Discontent continues on the D – Street for the fifth consecutive session as there was no respite for the bulls yesterday. The domestic markets maintained its descent amid the constant selling by the FIIs in the cash segment. The index Nifty spot sneaked below the support of 11300 and closed below the same with a loss of around 60 odd points. Meanwhile, the Nifty Bank index too lost around 200 points from its previous close. Market breadth remained in the favor of declining counters right from the beginning. Even the FO stocks breadth was negative. On the sectoral front, the NIFTY METAL (-2.37%) and NIFTY AUTO (-1.95%) stocks were the worst performers while the NIFTY MEDIA (+1.69%) and NIFTY FMCG (+0.01%) stocks remained resilient. From the F&O space, TORNTPHARMA (+10.39%), INDIGO (+5.59%) and ZEEL (+4.50%) outperformed.
Yesterday’s fall forced the index to sneak below 11300 on closing basis. We have been mentioning that if Nifty fails to bounce from here then we are heading for more correction going ahead. We maintain this stance and the fall has now open doors for 11130 which is the placement of 200 Day simple moving average. On the upside, only a move above 11350 might bring some relief for the bulls. But yes, we have now entered a ‘Sell on rise’ market unless 11700 level is taken out. Traders are advised to avoid bottom fishing in individual stocks and in index.
Posted by Mehul Kothari | Published on 24-JUL-2019
NIFTY Daily CHART :
Despite the stable global cues, yet again the domestic markets remained under pressure throughout the session to close in red. During the session, index Nifty made a genuine effort to display some strength and attempted to clear previous high of 11398. However, selling pressure in second half forced the index to reach day’s low and close with marginal loss. Yet again, Nifty Bank index was the main culprit behind the fall in markets due to the selloff in HDFCBANK and PSU BANK stocks.
As the day progressed, market breadth turned in the favor of declining counters from advancing ones. Even the FO stocks breadth was negative. On the sectoral front, the NIFTY PSU BANK (-3.12%) and NIFTY FINSERVICE (-0.72%) stocks were the worst performers while the NIFTY REALTY (+0.99%) and NIFTY FMCG (+0.96%) stocks remained resilient. From the F&O space, DHFL (+14.49%), RELCPAITAL (+4.55%) and POWERGRID (+2.64%) outperformed.
Despite yesterday’s oscillation, Nifty is stuck in a range of 11400 on the upside and 11300 on the downside. Thus, we continue to mention that if the buying has to emerge it should emerge from here on or else we are heading for more correction going ahead.
At this juncture the prudent strategy is to wait and watch. But aggressive traders can go long in index with a strict stop of 11300 for the upside target of 11500. On the upside a move above 11400 could result in some fresh momentum towards 11450 in the coming session but the bullish trend will resume only above 11700 mark.
Disclaimer)
Posted by Mehul Kothari | Published on 29-JUL-2019
NIFTY Daily CHART :
Indian markets maintained its southward journey for the fourth consecutive week. The index Nifty spot remained under pressure throughout the week to close with a loss of more than a percent. During the process, it also breached the crucial support of 11300. On the other hand, Nifty Bank index lost around -1.5%. On the sectoral front, the NIFTY AUTO PSU BANK (-5.13%) and NIFTY FINSERVICE (-2.68%) stocks were the worst performers while the NIFTY MEDIA (+5.61%) and NIFTY PHARMA (+1.73%) stocks remained resilient. From the F&O space, M&MFIN (-17.89%), VODAFONE (-15.53%) and CANBK (-9.42%) shattered.The weekly chart of Nifty depicts that at this juncture, index is resting above its long term rising trend line. That breakdown will get confirmed below 11100 mark which is also the placement of 200 Day SMA. For the time being this seems to be a support but there was another breakdown below 11300 (shown as dotted line) which has a downside target of around 10700. Thus, we will have to wait and watch whether index respects long term trend line or the impact of breakdown. Short term traders who wish to play for bounce can go long above 11350 for upside of around 100 – 200 points. However, the major upside trend won’t resume before 11600 mark. Also, the selling by FII’s in cash segment indicates that it’s not over yet. Hence, it is better to concentrate on individual stocks which are still giving decent opportunities for fresh bounce and also some exciting shorts.
RELIANCE : BEARISH
Since past few months, RELIANCE has been an outperformer but now is on the verge of trend line breakdown.The trend line breakdown is coupled with a structure which resembles bearish ‘Head and Shoulder’ pattern.Weekly RSI too is on the verge of breakdown which indicates beginning of a corrective move.Traders can sell the stock on between 1210 – 1230; with a stop of 1300 for the target of 1140 - 1060 in the coming weeks.
Disclaimer)
Share Market Today - 25th July 2019
NIFTY Daily Chart
Discontent continues on the D – Street for the fifth consecutive session as there was no respite for the bulls yesterday. The domestic markets maintained its descent amid the constant selling by the FIIs in the cash segment. The index Nifty spot sneaked below the support of 11300 and closed below the same with a loss of around 60 odd points. Meanwhile, the Nifty Bank index too lost around 200 points from its previous close.
Market breadth remained in the favor of declining counters right from the beginning. Even the FO stocks breadth was negative. On the sectoral front, the NIFTY METAL (-2.37%) and NIFTY AUTO (-1.95%) stocks were the worst performers while the NIFTY MEDIA (+1.69%) and NIFTY FMCG (+0.01%) stocks remained resilient. From the F&O space, TORNTPHARMA (+10.39%), INDIGO (+5.59%) and ZEEL (+4.50%) outperformed.
Yesterday’s fall forced the index to sneak below 11300 on closing basis. We have been mentioning that if Nifty fails to bounce from here then we are heading for more correction going ahead. We maintain this stance and the fall has now open doors for 11130 which is the placement of 200 Day simple moving average. On the upside, only a move above 11350 might bring some relief for the bulls.
But yes, we have now entered a ‘Sell on rise’ market unless 11700 level is taken out. Traders are advised to avoid bottom fishing in individual stocks and in index.
Disclaimer
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Share Market Today - 24th July 2019
NIFTY Daily CHART : Despite the stable global cues, yet again the domestic markets remained under pressure throughout the session to close in red. During the session, index Nifty made a genuine effort to display some strength and attempted to clear previous high of 11398. However, selling pressure in second half forced the index to reach day’s low and close with marginal loss. Yet again, Nifty Bank index was the main culprit behind the fall in markets due to the selloff in HDFCBANK and PSU BANK stocks. As the day progressed, market breadth turned in the favor of declining counters from advancing ones. Even the FO stocks breadth was negative. On the sectoral front, the NIFTY PSU BANK (-3.12%) and NIFTY FINSERVICE (-0.72%) stocks were the worst performers while the NIFTY REALTY (+0.99%) and NIFTY FMCG (+0.96%) stocks remained resilient. From the F&O space, DHFL (+14.49%), RELCPAITAL (+4.55%) and POWERGRID (+2.64%) outperformed. Despite yesterday’s oscillation, Nifty is stuck in a range of 11400 on the upside and 11300 on the downside. Thus, we continue to mention that if the buying has to emerge it should emerge from here on or else we are heading for more correction going ahead. At this juncture the prudent strategy is to wait and watch. But aggressive traders can go long in index with a strict stop of 11300 for the upside target of 11500. On the upside a move above 11400 could result in some fresh momentum towards 11450 in the coming session but the bullish trend will resume only above 11700 mark. Disclaimer)
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Share Market Today - 29th July 2019
NIFTY Daily CHART : Indian markets maintained its southward journey for the fourth consecutive week. The index Nifty spot remained under pressure throughout the week to close with a loss of more than a percent. During the process, it also breached the crucial support of 11300. On the other hand, Nifty Bank index lost around -1.5%. On the sectoral front, the NIFTY AUTO PSU BANK (-5.13%) and NIFTY FINSERVICE (-2.68%) stocks were the worst performers while the NIFTY MEDIA (+5.61%) and NIFTY PHARMA (+1.73%) stocks remained resilient. From the F&O space, M&MFIN (-17.89%), VODAFONE (-15.53%) and CANBK (-9.42%) shattered.The weekly chart of Nifty depicts that at this juncture, index is resting above its long term rising trend line. That breakdown will get confirmed below 11100 mark which is also the placement of 200 Day SMA. For the time being this seems to be a support but there was another breakdown below 11300 (shown as dotted line) which has a downside target of around 10700. Thus, we will have to wait and watch whether index respects long term trend line or the impact of breakdown. Short term traders who wish to play for bounce can go long above 11350 for upside of around 100 – 200 points. However, the major upside trend won’t resume before 11600 mark. Also, the selling by FII’s in cash segment indicates that it’s not over yet. Hence, it is better to concentrate on individual stocks which are still giving decent opportunities for fresh bounce and also some exciting shorts. RELIANCE : BEARISH Since past few months, RELIANCE has been an outperformer but now is on the verge of trend line breakdown.The trend line breakdown is coupled with a structure which resembles bearish ‘Head and Shoulder’ pattern.Weekly RSI too is on the verge of breakdown which indicates beginning of a corrective move.Traders can sell the stock on between 1210 – 1230; with a stop of 1300 for the target of 1140 - 1060 in the coming weeks. Disclaimer)