Finally, we witnessed the much awaited correction in domestic markets amid Nifty failing to clear the 11000 mark. The session started on a weak note following the selling pressure in Asian indices. However, the selling pressure on D – Street aggravated once the Dow Futures started trading 400 points lower from its previous close. As a result, Nifty nosedive around 180 points to sneak below 10750 mark. Eventually, Nifty Bank index too closed with a loss of 220 points.
The market breadth turned negative right from the beginning of the session and deteriorated as the day progressed due to selling in broader markets. As a result, both the Midcap and Small cap indices ended with a loss of around 1.3%. On the sectoral front, none of the group indices managed to close in green. Amongst them, NIFTY METAL (-3.41%) and NIFTY AUTO (-3.05%) were beaten down the most. From the F&O space, EICHERMOTA (-9.56%), JETAIRWAYS (-9.26%) and TVSMOTOR (-6.03%) were the worst performers.
NIFTY Trend Tracker
NIFTY - Daily Chart
MARKET OUTLOOK
Since past few sessions, we were constantly mentioning about the possibility of some profit booking in the markets unless Nifty clears the 11000 mark. In line with that view, we observed heavy selling pressure in the markets which dragged the index towards 10750 mark. Now, on the daily chart we could observe that index is hovering near 200 Day SMA. A close below the same might bring in further profit booking which could drag the index towards 10640 – 10530 mark.
On the upside, positive momentum might continue only above 11000 mark. On broader time frame, the support of 10330 has now shifted to 10530. A decisive move below the same might end the bullish trend for the time being. At this juncture, we advise traders to remain stock specific but avoid over leveraged positions.
GSFC - DAILY CHART
STOCK OUTLOOK
On 31st Dec 2018, GSFC underwent a breakout from the ‘Symmetrical Triangle’ pattern.
During previous session, the stock retested its breakout point and the pattern is still intact.
Meanwhile, the stock has managed to surpass 200 Day SMA which is a sign of strength.
Thus, we advise traders to buy the stock near 110 mark with a stop loss of 106 for the target of 120.
Posted by Mehul Kothari | Published on 03-JAN-2019
Market Recap
The year 2019 began on an optimistic note for the domestic markets in the absence of any global cues. Initially, the benchmark indices started the session on a flat note but kept on inching lower as the day progressed. However sudden buying interest in the final hour of the session helped the indices to recoup all their losses and close with decent gains. The index Nifty almost drifted towards the first support of 10800 sand closed well above the 10900 mark. Nifty Bank index outperformed to close with a gain of more than 200 points.
Once again, the market breadth remained in the favour of advancing counters due to participation of Midcap and Small cap stocks. On the sectoral front, NIFTY REALTY (+2.22%), NIFTY PSU BANK (+1.59%) and NIFTY FIN (+1.00%) stocks were the biggest gainers. From the F&O space, BANKBARODA (+4.22%), UNIONBANK (+4.18%) and INDIANB (+3.47%) were the top performers.
Outlook
During the previous session, recovery in Nifty was quiet encouraging for the bulls but still the index is way below 11000 mark. So we continue to mention that for the short term 11000 would act as fresh trigger for the bulls. Only a move above the same might extend the upside. In case of profit booking, 10800 would act as intermediate support below which we could witness further profit booking.
On a larger time frame, 11000 – 11200 continue to remain very strong hurdle for the markets. For a broader view, we expect the markets to respect support of 10330 and resistance of 11000 and trade within this band. A move on either side of the band might dictate the major trend for the coming few months. At this juncture, we advise traders to remain stock specific but avoid over leveraged positions.
STOCK : SUVEN– Daily Chart
Stock Outlook
The 200 Day SMA has been acting as strong support for the stock since long time
As displayed on the above chart, it is evident that the counter has multiple bottoms ate 215 mark
On the daily RSI we are witnessing a breakout from the pattern which resembles ‘Falling Wedge’
Thus, we advise traders to buy the stock in the range of 232 - 228 with a stop loss of 215 for the target of 264
Disclaimer)
Posted by Mehul Kothari | Published on 07-JAN-2019
MARKET RECAP
The week kicked off on an optimistic note on the D – street on the back of a sharp surge in the US markets during the final session of previous week. However, the benchmark indices failed to sustain at higher levels and closed with decent gains. The index Nifty spot registered an intraday high of 10836 but close below 10800 mark with a change of 44 points. Meanwhile, the Nifty bank index gained over 100 points.
The market breadth remained extremely strong from the beginning of the session but turned a bit neutral as the day progressed due to selling in broader markets. On the sectoral front, apart from NIFTY PHARMA (-0.58%), NIFTY PSU BANK (-0.37%) and NIFTY METAL (-0.11%) all the other group indices closed in positive terrain. From the F&O space, IBULHSGFIN (-5.43%), DHFL (-4.44%) and VGUARD (-4.08%) were the worst performers..
MARKET OUTLOOK
During Friday’s session, we recommended going long in the index due to the rising trend line as shown above. In line with that view, Nifty rallied more than 200 points from that low. However, yet again we witnessed some hesitation on the higher side. The price structure indicates that both lower and upper ranges are contracting and taking shape of a triangle pattern. A breakout on either side from this pattern shall dictate the further trend.
On the upside, positive momentum might continue only above 10923 mark which could take the index towards psychological level of 11000. On broader time frame, the support of 10330 has now shifted to 10530. A decisive move below the same might end the bullish trend for the time being. Intermediate support is now at the lower range of triangle which is Friday’s low of 10628. At this juncture, we advise traders to remain stock specific but avoid over leveraged positions.
STOCK : TATAMOTORS – Daily Chart
STOCK OUTLOOK
TATAMOTORS has been one of the most underperformed stocks from the heavyweights in recent years and thus it’s in an oversold zone.
At this juncture, the stock confirmed breakout on the daily chart along with positive placement of RSI.
Along with the positive price action, we are also witnessing decent Open Interest built up in Tata motors future.
Thus, we advise traders to buy the stock between 175 - 165 with a stop loss of 155 for the target of 200.
Disclaimer)
Share Market Today - 3rd January 2019
Market Recap:
NIFTY Trend Tracker
NIFTY - Daily Chart
MARKET OUTLOOK
GSFC - DAILY CHART
STOCK OUTLOOK
Disclaimer
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Share Market Today - 2nd January 2019
Market Recap The year 2019 began on an optimistic note for the domestic markets in the absence of any global cues. Initially, the benchmark indices started the session on a flat note but kept on inching lower as the day progressed. However sudden buying interest in the final hour of the session helped the indices to recoup all their losses and close with decent gains. The index Nifty almost drifted towards the first support of 10800 sand closed well above the 10900 mark. Nifty Bank index outperformed to close with a gain of more than 200 points. Once again, the market breadth remained in the favour of advancing counters due to participation of Midcap and Small cap stocks. On the sectoral front, NIFTY REALTY (+2.22%), NIFTY PSU BANK (+1.59%) and NIFTY FIN (+1.00%) stocks were the biggest gainers. From the F&O space, BANKBARODA (+4.22%), UNIONBANK (+4.18%) and INDIANB (+3.47%) were the top performers. Outlook During the previous session, recovery in Nifty was quiet encouraging for the bulls but still the index is way below 11000 mark. So we continue to mention that for the short term 11000 would act as fresh trigger for the bulls. Only a move above the same might extend the upside. In case of profit booking, 10800 would act as intermediate support below which we could witness further profit booking. On a larger time frame, 11000 – 11200 continue to remain very strong hurdle for the markets. For a broader view, we expect the markets to respect support of 10330 and resistance of 11000 and trade within this band. A move on either side of the band might dictate the major trend for the coming few months. At this juncture, we advise traders to remain stock specific but avoid over leveraged positions. STOCK : SUVEN– Daily Chart Stock Outlook The 200 Day SMA has been acting as strong support for the stock since long time As displayed on the above chart, it is evident that the counter has multiple bottoms ate 215 mark On the daily RSI we are witnessing a breakout from the pattern which resembles ‘Falling Wedge’ Thus, we advise traders to buy the stock in the range of 232 - 228 with a stop loss of 215 for the target of 264 Disclaimer)
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Share Market Today - 8th January 2019
MARKET RECAP The week kicked off on an optimistic note on the D – street on the back of a sharp surge in the US markets during the final session of previous week. However, the benchmark indices failed to sustain at higher levels and closed with decent gains. The index Nifty spot registered an intraday high of 10836 but close below 10800 mark with a change of 44 points. Meanwhile, the Nifty bank index gained over 100 points. The market breadth remained extremely strong from the beginning of the session but turned a bit neutral as the day progressed due to selling in broader markets. On the sectoral front, apart from NIFTY PHARMA (-0.58%), NIFTY PSU BANK (-0.37%) and NIFTY METAL (-0.11%) all the other group indices closed in positive terrain. From the F&O space, IBULHSGFIN (-5.43%), DHFL (-4.44%) and VGUARD (-4.08%) were the worst performers.. MARKET OUTLOOK During Friday’s session, we recommended going long in the index due to the rising trend line as shown above. In line with that view, Nifty rallied more than 200 points from that low. However, yet again we witnessed some hesitation on the higher side. The price structure indicates that both lower and upper ranges are contracting and taking shape of a triangle pattern. A breakout on either side from this pattern shall dictate the further trend. On the upside, positive momentum might continue only above 10923 mark which could take the index towards psychological level of 11000. On broader time frame, the support of 10330 has now shifted to 10530. A decisive move below the same might end the bullish trend for the time being. Intermediate support is now at the lower range of triangle which is Friday’s low of 10628. At this juncture, we advise traders to remain stock specific but avoid over leveraged positions. STOCK : TATAMOTORS – Daily Chart STOCK OUTLOOK TATAMOTORS has been one of the most underperformed stocks from the heavyweights in recent years and thus it’s in an oversold zone. At this juncture, the stock confirmed breakout on the daily chart along with positive placement of RSI. Along with the positive price action, we are also witnessing decent Open Interest built up in Tata motors future. Thus, we advise traders to buy the stock between 175 - 165 with a stop loss of 155 for the target of 200. Disclaimer)