Share Market Today - 1st February 2019



                                                      KEY MARKET DATA POINTS

Yesterday we witnessed a pre-budget rally in domestic markets which was in line with our buy recommendation in Nifty which was initiated on Wednesday. The index Nifty started the session with an upside gap following the gains from US markets. As the day progressed, buying intensified which pulled the index towards 10850 mark. Eventually, Nifty closed the session with a gain of around 180 points. On the other hand, NIFTY BANK surged around 500 points during the session.

The market breadth remained strongly in the favour of advancing counters due to broad based buying. On the sectoral front, except NIFTY MEDIA (-1.08%) all the other group indices ended in a positive terrain. Amongst them, NIFTY BANK (+1.75%), NIFTY PVTBANK (+1.66%) and NIFTY IT (+1.61%) stocks were the biggest gainers. From the F&O space, DHFL (-16.37%), AJANTPHARM (-5.56%) and MFSL (-4.94%) were the biggest laggards.


Post the ‘Doji’ formation on Tuesday, index Nifty underwent some recovery and yesterday we witnessed an extension of the same. As of now this could be termed as a pre-budget rally. At this juncture, Nifty is resisting just below the placement of 200 DSMA. Further, this resistance coincides with 61.8% Fibonacci retracement of the recent fall. Thus going ahead, only a move above yesterday’s high of 10838 might extend this rally. For medium term, this pullback should be used to exit long positions of create shorts since a new bullish leg would start only above 11000 mark.

On the downside, 10680 might act as strong support in case of any negative surprise from the budget. A move below the same might resume the downside momentum which could drag the index towards 10580 – 10530 levels. Traders are constantly advised to remain stock specific and avoid over leveraged positions.

GSFC – Weekly Chart



  • The stock has been finding support near the placement of 200 Weeks SMA since past few months
  • On the daily chart, we are witnessing that the stock is rebounding from 78.6% Fibonacci retracement level of the previous move
  • Also, the weekly candlestick pattern resembles a bullish hammer which is reversal in nature
  • Thus, we advise traders to buy the stock in the range 96.50 – 92.50 with a stop of 85 for a target of 105 - 115

Previous Story

Share Market Today - 30th January 2019

MARKET RECAP                                                    KEY MARKET DATA POINTS Despite strong recovery from day’s low domestic markets maintained its losing streak for third consecutive session. The index Nifty started the session on a flat note but selling pressure intensified as day progressed since the street was expecting something highly shocking news from the Cobra post. As a result, Nifty spot breached the support of 10630 to sneak well below 10600 mark. However, once the news was out post 3.00 pm, the event turned out to be a non-event which pulled the index back above 10650 mark. For a change, after quite some time market breadth seemed to be neutral due to buying in oversold stocks. On the sectoral front, defensives like NIFTY PHARMA (+1.07%), NIFTY IT (+0.74%) and NIFTY FMCG (+0.65%) supported the markets whereas NIFTY REALTY (-0.48%) and NIFTY FIN SERVICE (-0.37%) stocks were the biggest losers. From the F&O space, BANKINDIA (+8.32%), ADANIPOWER (+8.32%) and INDIACEM (+5.92%) were the biggest gainers. MARKET OUTLOOK   Post the breakdown from swing low of 10690 Nifty maintained its descent and closed well below the rising trend line. However, the candlestick pattern resembles a ‘Doji’ formation which designates indecisiveness prevailing at current levels. Hence, there is a possibility of some breather from the fall in the coming session. On the contrary, the bearish ‘Double top’ pattern on the daily chart is still intact which indicates one should avoid any aggressive long bets till the time Nifty is trading below 11000 mark. On the downside, the doors are now open for previous supports like 10530 – 10330 at least. In short, tables have turned and we have entered a ‘Sell on Rise’ market which will be negated above 11000 mark. On the upside, 10690 (high of Doji) would act as an intermediate resistance in the coming session. We expect the volatility to pick up due to F&O expiry and interim budget and hence traders are advised to avoid over leveraged positions.   BAJFINANCE – Daily Chart OUTLOOK During Monday’s trading session, BAJFINANCE confirmed a breakdown from rising trend line on the daily chart In addition, we are witnessing a ‘Double Top’ formation along with a breakdown in daily RSI The above technical evidences indicates fresh round of selling in the stock Thus, we advise traders to short the stock in the range 2540 - 2570 with a stop of 2670 with a target of 2440 - 2320 )

read more

Next Story

Share Market Today - 7th February 2019

MARKET RECAP                                                                                                       KEY MARKET DATA POINTS After a wait of more than three months; finally we witnessed the much awaiting breakout in our benchmark indices. The index Nifty at last managed to rip-off the strong and psychological hurdle of 11000 mark on closing basis. After a positive opening, Nifty gained momentum and closed near day’s high with a mammoth gain of around 130 points. Meanwhile, Nifty Bank index underperformed the benchmarks with marginal gains ahead of the RBI monetary policy. Despite the markets closing with heavy gains, market breadth still remained slightly in the favour of declining counters and that is still a cause of concern. On the sectoral front, none of the group indices closed in red. Amongst them Nifty MEDIA (+4.07%), NIFTY METAL (+2.34%) and NIFTY PSU BANK (+1.42%) stocks were the biggest gainers. From the F&O space, DISHTV (20.95%), SRF (10.12%) and SUZLON (+9.72%) were the top performers. MARKET OUTLOOK The given above daily chart of Nifty depicts that the index finally managed to confirm a range breakout from the ‘Triple Top’ pattern which we have been discussing. Also, the index managed to close well above the same and this is a sign of further strength. Going ahead, nifty is poised to test upside levels of 11084 – 11145 in the coming sessions. However, we still believe that 11100 – 11200 could be a tough zone of the bulls and thus we need to wait and watch. In addition, we have a major event coming up i.e. The RBI policy and BANKNIFTY has been an underperformer since past few sessions. Thus, we would advise traders to wait for any confirmation post the policy in order to create any fresh positions. In case of any downside, 10960 would act as an intermediate support below which there could be some profit booking. Disclaimer)

read more