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.
Posted by Mehul Kothari | Published on 01-FEB-2019
MARKET RECAP
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.
MARKET OUTLOOK
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
OUTLOOK
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
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Posted by Mehul Kothari | Published on 11-FEB-2019
NIFTY
MARKET RECAP AND OUTLOOK
It was a high volatile action packed week wherein the index Nifty spot surpassed the much awaited zone of 11000 but eventually failed to close above the same. During the week, Nifty registered high of 11118 but ended flat near 10950 mark. Despite the decent rally there was too much pressure on the broader markets which indicates strong index management. On the other hand, even NIFTY BANK index remained quiet even after a surprise rate cut in RBI’s monetary policy. The above kind of behaviour indicates that markets are facing headwinds at higher levels due to lower participation.
Technically, we have been constantly warning about the strong hurdle between 11100 – 11200 zone. Now, Nifty has formed a ‘Doji’ candlestick pattern right at the 61.8% Fibonacci retracement level of the previous move as displayed above. If we club Friday’s black candle then together both can be construed as an “Evening Star” pattern which is a reversal one. Thus, going ahead a fresh upside could be expected only above 11118 mark. On the downside, breach of 10925 level would trigger fresh selling in the market which could drag the index towards 10800 mark. We continue to maintain ‘Stay Light’ stance on the market since the heavy weights are yet to correct.Disclaimer)
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
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Share Market Today - 1st February 2019
MARKET RECAP 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. MARKET OUTLOOK 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 OUTLOOK 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 )
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Weekly BSE & NSE Gainers & Losers - 4th Feb to 8th Feb 2019.
NIFTY MARKET RECAP AND OUTLOOK It was a high volatile action packed week wherein the index Nifty spot surpassed the much awaited zone of 11000 but eventually failed to close above the same. During the week, Nifty registered high of 11118 but ended flat near 10950 mark. Despite the decent rally there was too much pressure on the broader markets which indicates strong index management. On the other hand, even NIFTY BANK index remained quiet even after a surprise rate cut in RBI’s monetary policy. The above kind of behaviour indicates that markets are facing headwinds at higher levels due to lower participation. Technically, we have been constantly warning about the strong hurdle between 11100 – 11200 zone. Now, Nifty has formed a ‘Doji’ candlestick pattern right at the 61.8% Fibonacci retracement level of the previous move as displayed above. If we club Friday’s black candle then together both can be construed as an “Evening Star” pattern which is a reversal one. Thus, going ahead a fresh upside could be expected only above 11118 mark. On the downside, breach of 10925 level would trigger fresh selling in the market which could drag the index towards 10800 mark. We continue to maintain ‘Stay Light’ stance on the market since the heavy weights are yet to correct.Disclaimer)