Initially, Nifty turned down and tested the support of 11000 and then recovered sharply to cross 11100 mark. However, our mentioned level of 11150 acted as a strong resistance yesterday (this was again the 200 Day SMA). Going ahead a move above 11150 only would result in some more relief in the market. However, on the downside 11000 would continue to act as support. As per the option chain, highest built up is seen in 11200 CE to the tune of around 2.5 million shares. So this could be a strong hurdle whereas on the downside 11000 is a base with 2.4 million shares in 11000 strike PE.
Since the SGX NIFTY indicates a negative opening, traders can look for buying opportunity near 11000 levels only. Aggressive bets can be made only above 11150 mark. With regards to NIFTY BANK index , the index turned from the 28500 mark but on the upside failed to clear 29000 levels. Thus, it is stuck between 28500 – 29000 range. A move on the either side will dictate the further trend. Although we expect a bounce in the market but we maintain our cautious stance.
BEL : BULLISH
Post recent correction, the stock took a U – turn from the extension of its previous breakout
The support coincides with the placement of 200 day SMA which indicates fresh upside.
Even the daily RSI has turned from the support of 30.
Traders can buy the stock between 102 – 98with a stop of 92 for the upside target of 116.
Posted by Mehul Kothari | Published on 31-JUL-2019
NIFTY DAILY CHART
Once again we witnessed a whipsaw in the Indian markets where the benchmarks indices attempted for a bounce and ultimately gave up. The index Nifty started the session on a positive note and surged around 70 points from its previous close. However, the moment was short lived as selling pressure aggravated and forced the index to close with another cut of more than 100 points. Nifty Bank was the main culprit since it plunged around 800 points from day’s high to close with a loss of 500 points.
The market breadth largely remained in the favour of declining counters right from the beginning. On the sectoral front, the NIFTY PSUBANK (-4.88%) and NIFTY METAL (-3.25%) stocks were the worst performers while the NIFTY IT (+0.65%) stocks remained resilient. From the F&O space, BEL (+4.9%), STAR (+3.7%) and BHARTIARTL (+3.2%) remained upbeat.
Since past couple of sessions we have been discussing about 11100 mark which was a trend line support and the placement of 200 DSMA. Now the index has breached that and closed well below the same. Thus, we maintain our downside positional target of 10800 – 10600 from here on. This is because the breakdown is accompanied with another range break in RSI.
Also, we have been echoing that the selling by FII’s in cash segment indicates that it’s not over yet. Thus, we continue with sell on rise view unless there is any sign of strong bottom formation. The major resistance as now shifted to 11300 for positional basis. The immediate resistance is now placed at 11150 and the psychological support is now at 11000 for the coming session.
Disclaimer)
Posted by Mehul Kothari | Published on 01-AUG-2019
NIFTY Daily Chart
It was a dreadful session yesterday for the domestic market post the hopeful closing of Wednesday. The markets started the session with a downside gap and kept on sinking as the day progressed to close with massive loss. The index Nifty spot lost around 240 points from previous close to sneak below 10900 mark during the session. However, a V-Shape recovery in the final hour helped the index to cut half of its loss and close near 11000 mark. It was horrific day for NIFTY BANK index too since it collapsed more than 800 points during the process. As usual the market breadth again turned in the favour of declining counters. On the sectoral front, the NIFTY MEDIA (-3.12%) and NIFTY METAL (-3.13%) stocks were the worst performers while the NIFTY AUTO (+0.06%) stocks underwent some recovery. From the F&O space, UJJIVAN (+6.25%), STAR (+4.86%) and VOLTAS (+4.11%) remained top gainers.
Yesterday, for a moment we expected the markets to continue with its relief rally post opening with a downside gap. But, unfortunately Nifty breached support of 11000 and in line with our broader view we witnessed severe selling after that. The low registered at 10881 while the close was 100 points above that at 10980. The zone from which Nifty turned yesterday was a consolidation zone during the months of Dec 2018 to Mar 2019 from where the index started its fresh rally of all time high. This being a demand zone there is a possibility of some relief for the bulls if 10880 level is intact. However, since the broader view is bearish we don’t want to get carried away with a buy trade as of now. Post the opening, we would reassess the conditions and then go for any recommendation. As of now we maintain our stance that aggressive bets can be made only above 11150 mark. With regards to NIFTY BANK index , it breached 28500 support and met the 28000 level. Now, 28000 – 28700 could be the trading range for the index. Coming to the option chain, yesterday huge positions were built in 11000 strike CE (a rise of 32 lac shares) which indicates a short covering in CE once Nifty clears 11000 mark. On the downside, PE concentration is at 10900.Disclaimer)
Share Market Today - 1st August 2019
NIFTY Daily Chart
Initially, Nifty turned down and tested the support of 11000 and then recovered sharply to cross 11100 mark. However, our mentioned level of 11150 acted as a strong resistance yesterday (this was again the 200 Day SMA). Going ahead a move above 11150 only would result in some more relief in the market. However, on the downside 11000 would continue to act as support. As per the option chain, highest built up is seen in 11200 CE to the tune of around 2.5 million shares. So this could be a strong hurdle whereas on the downside 11000 is a base with 2.4 million shares in 11000 strike PE.
Since the SGX NIFTY indicates a negative opening, traders can look for buying opportunity near 11000 levels only. Aggressive bets can be made only above 11150 mark. With regards to NIFTY BANK index , the index turned from the 28500 mark but on the upside failed to clear 29000 levels. Thus, it is stuck between 28500 – 29000 range. A move on the either side will dictate the further trend. Although we expect a bounce in the market but we maintain our cautious stance.
BEL : BULLISH
Disclaimer
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Share Market Today - 31st July 2019
NIFTY DAILY CHART Once again we witnessed a whipsaw in the Indian markets where the benchmarks indices attempted for a bounce and ultimately gave up. The index Nifty started the session on a positive note and surged around 70 points from its previous close. However, the moment was short lived as selling pressure aggravated and forced the index to close with another cut of more than 100 points. Nifty Bank was the main culprit since it plunged around 800 points from day’s high to close with a loss of 500 points. The market breadth largely remained in the favour of declining counters right from the beginning. On the sectoral front, the NIFTY PSUBANK (-4.88%) and NIFTY METAL (-3.25%) stocks were the worst performers while the NIFTY IT (+0.65%) stocks remained resilient. From the F&O space, BEL (+4.9%), STAR (+3.7%) and BHARTIARTL (+3.2%) remained upbeat. Since past couple of sessions we have been discussing about 11100 mark which was a trend line support and the placement of 200 DSMA. Now the index has breached that and closed well below the same. Thus, we maintain our downside positional target of 10800 – 10600 from here on. This is because the breakdown is accompanied with another range break in RSI. Also, we have been echoing that the selling by FII’s in cash segment indicates that it’s not over yet. Thus, we continue with sell on rise view unless there is any sign of strong bottom formation. The major resistance as now shifted to 11300 for positional basis. The immediate resistance is now placed at 11150 and the psychological support is now at 11000 for the coming session. Disclaimer)
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Share Market Today - 2nd August 2019
NIFTY Daily Chart It was a dreadful session yesterday for the domestic market post the hopeful closing of Wednesday. The markets started the session with a downside gap and kept on sinking as the day progressed to close with massive loss. The index Nifty spot lost around 240 points from previous close to sneak below 10900 mark during the session. However, a V-Shape recovery in the final hour helped the index to cut half of its loss and close near 11000 mark. It was horrific day for NIFTY BANK index too since it collapsed more than 800 points during the process. As usual the market breadth again turned in the favour of declining counters. On the sectoral front, the NIFTY MEDIA (-3.12%) and NIFTY METAL (-3.13%) stocks were the worst performers while the NIFTY AUTO (+0.06%) stocks underwent some recovery. From the F&O space, UJJIVAN (+6.25%), STAR (+4.86%) and VOLTAS (+4.11%) remained top gainers. Yesterday, for a moment we expected the markets to continue with its relief rally post opening with a downside gap. But, unfortunately Nifty breached support of 11000 and in line with our broader view we witnessed severe selling after that. The low registered at 10881 while the close was 100 points above that at 10980. The zone from which Nifty turned yesterday was a consolidation zone during the months of Dec 2018 to Mar 2019 from where the index started its fresh rally of all time high. This being a demand zone there is a possibility of some relief for the bulls if 10880 level is intact. However, since the broader view is bearish we don’t want to get carried away with a buy trade as of now. Post the opening, we would reassess the conditions and then go for any recommendation. As of now we maintain our stance that aggressive bets can be made only above 11150 mark. With regards to NIFTY BANK index , it breached 28500 support and met the 28000 level. Now, 28000 – 28700 could be the trading range for the index. Coming to the option chain, yesterday huge positions were built in 11000 strike CE (a rise of 32 lac shares) which indicates a short covering in CE once Nifty clears 11000 mark. On the downside, PE concentration is at 10900.Disclaimer)