Share Market Today - 16th May 2019

MARKET RECAPKey Market Data Points Yesterday was a seventh consecutive session where the domestic market was dominated by the bears on the back of weak global cues (only during first half). However, we witnessed a fabulous comeback by the bulls during the second half which helped the benchmark to recover sharply and close with considerable gains. This ended their six day’s losing streak. The index Nifty lost another 40 points during the first half but eventually ended the session with a gain of more than 70 points. Yet again the market breadth remained in the favour of declining counters throughout the session but we witnessed broad based buying from the lower levels in individual stock. On the sectoral front, apart from NIFTY IT (-1.21%) all the other group indices closed in positive terrain. With regards to gainers, NIFTY PSU BANK (+2.85%) and NIFTY PHARMA (+1.52%) stocks were the biggest outperformers. From the F&O space, IRB (+8.34%), DHFL (+8.84%) and IDBI (+3.28%) were the leaders. MARKET OUTLOOK Buying after rigorous fall of so many sessions indicates exhaustion which we have been mentioning in the past couple of reports. In the upcoming session, 11100 - 11000 might act as strong base for the bulls and hence traders can use a dips from here to initiate fresh long positions. Short term traders can follow a stop of 11000 but traders willing to hold positions with regards to election verdict might accumulate the index fut with a stop below 10700. On the upside, 11300 might now act as immediate hurdle for the bulls. A close above the same might confirm a bottom in place. We advise traders to avoid over leveraged positions and follow strict stop loss. Click Here to Download the Report  Disclaimer                   )

NIFTY DAILY CHARTFinally the bulls retaliated back during yesterday’s session in the absence of any negative triggers. The domestic markets started the session with an upside gap and gained momentum as the day progressed. Eventually, the index Nifty spot closed with decent gain of 100 points. Meanwhile, the Nifty Bank index too surged around 250 points but is still trading below 29K mark. Despite a bullish session, the market breadth remained in the favour of declining counters throughout the session which indicated selling in individual stocks. On the sectoral front, apart from NIFTY PHARMA (-0.21%) all the other group indices closed in positive terrain. With regards to gainers, NIFTY MEDIA (+2.26%) and NIFTY METAL (+1.17%) stocks were the biggest performers. From the F&O space, TATAGLOBAL (+11.56%), TATACHEM (+8.66%) and ZEEL (+8.56%) were the leaders. MARKET OUTLOOK As expected, buying emerged from the lower levels during yesterday’s session. However, Nifty is yet to clear the initial hurdle of 11300. Hence we maintain our stance that a move above 11300 could trigger fresh momentum on the upside. In such scenario, Nifty has potential to retest 11400 – 11600 levels. In the upcoming sessions, 11100 - 11000 might act as strong base for the bulls and hence traders can use a dips from here to initiate fresh long positions. Short term traders can follow a stop of 11000 but traders willing to hold positions with regards to election verdict might accumulate the index fut with a stop below 10700. We advise traders to avoid over leveraged positions and follow strict stop loss.BANKNIFTY : HOURLY CHART Outlook : Bullish Given above is the hourly chart of NIFTY BANK index which depicts that the index was falling in a shrinking range The index confirmed a breakout from that range which resembles bullish “Falling Wedge’ pattern The price action is accompanied with a breakout in RSI too which indicates fresh upside Traders can buy the index future near 28900 with a stop of 28500 for the target of 29700 Disclaimer)