It was a historical session for the domestic markets since the benchmark indices posted one of the biggest single day gains of recent years. The markets started the session with a huge upside gap following the exit polls for election 2019 which indicated a clear majority for BJP led NDA. The index Nifty almost attempted for a new life high to close above 11800 mark with a massive gain of 421 points. Meanwhile, the Nifty Bank index surged more than 1300 points.
It was a broad based buying since morning which resulted in one sided market breadth in the favor of advancing counters. On the sectoral front, all the group indices closed in positive terrain. With regards to gainers, NIFTY PSU BANK (+7.88%) and NIFTY REALTY (+5.72%) stocks were the biggest performers. From the F&O space, ADANIENT (+29.42%), RPOWER (+19.17%) and RELINFRA (+14.98%) were the leaders.
MARKET OUTLOOK
As shown on the daily chart, NIFTY is on the verge of a fresh breakout from its all-time high of 11856. Going ahead, a move above the same might extend the gains towards 12000 and above levels. Traders holding long positions in index futures are advised to revise their stop loss below 11580 (in spot). In case of any consolidation or profit booking, 11750 – 11690 levels might act as intermediate support where the buying could remerge.
SBIN : WEEKLY CHART
Outlook : Bullish
Last week we recommended SBIN when it was trading near 315 mark. We also discussed about the conformation of ‘Symmetrical Triangle’ pattern on the weekly chart.
In line with our view the stock has already reached near the given target of 350.
However, at this juncture the stock is poised to clear all-time high. A close above 350 would open doors for 390.
Thus, keep holding longs in SBIN with a revised stop 324.
Posted by Mehul Kothari | Published on 24-MAY-2019
NIFTY Daily CHART :
The index Nifty registered its all-time high of 11833 during yesterday’s session but failed to sustain higher. In the end it closed with a loss of more than 100 points to close near 11700 mark. Meanwhile, the Nifty Bank index lost around 450 points.
On the sectoral front, all the group indices closed in negative terrain. With regards to losers, NIFTY AUTO (-2.52%) and NIFTY MEDIA (-2.32%) stocks were the worst performers. From the F&O space, TATAMOTORS (-7.03%), DISHTV (-6.17%) and IDBI (-5.94%) were the laggards.
MAKRET OUTLOOK
Although we witnessed a fresh breakout in NIFTY Spot at all time high but the index failed to sustain at higher level which resulted in a candlestick pattern which is not so encouraging for the bulls. It resembles a bearish DCC (Dark Cloud Cover) which indicates some profit booking. Thus, going ahead a move below yesterday’s low of 11682 might extend this profit booking towards 11590. Overall, we maintain our broader bullish stance and thus advise traders to go long on a decent fall. The stop loss for long positions in index should be placed below 11400 and on the upside, index has potential to sneak above 12000 mark.
On the upside, above 11183 would negate the DCC pattern which would pull the index towards our expected target.
INDIGO : WEEKLY CHART
Outlook : Bearish
The given above weekly chart of INDIGO depicts that the stock has been trading in a broadening kind of pattern since the year 2015
This pattern resembles a ‘Broadening Top’ formation and as per the same the stock could proceed towards its lower end in the coming months
Even the placement of weekly RSI shows top out sign
Thus, trader holding long positions in the stock should exit the same on every rise towards 1500 - 1600
The view would get negated on a weekly close above 1650 and on the downside the stock has potential to test 1200 in the coming weeks
Disclaimer)
Posted by Mehul Kothari | Published on 27-MAY-2019
CURRENCY PIVOT LEVELS
CROSS CURRENCY UPDATE
USDINR 29 MAY 2019 EXPIRY OPTION
RBI REFERENCE RATE (MAY 21 2019)
USDINR (MAY FUTURE)Dollar/rupee witnessed a cautious trade ahead of election results amid thin volumes and after hitting a day low 69.7025 settled at 69.7825 almost flat. Crude oil futures surged on escalating tensions between the US and Iran and on signs that producer club OPEC will continue withholding supply this year which supported it around 69.70 levels.
Technical, A strong break down of Ascending Channel on the EOD chart is creating probability for bearishness towards 68.80 and below. But, sentiment expects to remain cautious until the actual results scheduled for Thursday. On the downside, pair would need to break below 69.40 in order to extend recent loss else any rise towards 70-70.10 is expected to attract near term selling activities. On the upside, massive resistance is seen at 70.50-70.75
Trend –Volatile
GBPINR (MAY FUTURE)Pound/Rupee made a new multiweek low 88.5725 and settled at 88.62 compared to previous day close of 88.9875 levels. It took deep on concerns Prime Minister Theresa May's Brexit deal will not pass through the UK parliament while a strong dollar also weighing. Speculations over her replacement with a pro-Brexit PM eventually raises the risk of a no-deal Brexit and might continue fueling the GBP weakness, traders said.
Technical, Failure of trend reversal candle stick on the EOD chart is indicating for strong selling pressure in GBPINR. Pair unable to break its resistance 89.10 and retreated from 89.00. Today, a break below 88.40 would extend looses towards 88.00-87.50. Else, any rise towards 88.90-89.00 could attract selling pressure.
Trend –Volatile
MAJOR ECONOMIC DATA & EVENTS RELEASED YESTERDAY / EARLIER TODAY
Japan's exports fell 2.4% in April from a year earlier, down for a fifth straight month. That compared with a 1.8% drop seen by analysts in a Reuters poll, and a similar 2.4% decline in March.
MAJOR ECONOMIC DATA & EVENTS SCHEDULE TODAY
Note: Economic data expectations are based on median forecast by economists or Reuters and Bloomberg survey. Here positive impact indicates currency could appreciate and negative indicates currency could depreciate in comparison with US Dollar.Technical Chart Source: TickerNews Source: Ticker news, Forexfactory.com, forexlive.com and investing.com*Dos – Depends on Statement. DOV – Depends on Votes.Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (IndiaNivesh), for use by the recipient as information only and is not for circulation or public distribution. This document is not to be reproduced, copied, redistributed or published or made available to others, in whole or in part without prior permission from us. This document is not to be construed as an offer to sell or the solicitation of an offer to buy any currency pair. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our currency opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the currencies mentioned in the report.)
Share Market Today - 21st May 2019
NIFTY Daily CHART :
It was a historical session for the domestic markets since the benchmark indices posted one of the biggest single day gains of recent years. The markets started the session with a huge upside gap following the exit polls for election 2019 which indicated a clear majority for BJP led NDA. The index Nifty almost attempted for a new life high to close above 11800 mark with a massive gain of 421 points. Meanwhile, the Nifty Bank index surged more than 1300 points.
It was a broad based buying since morning which resulted in one sided market breadth in the favor of advancing counters. On the sectoral front, all the group indices closed in positive terrain. With regards to gainers, NIFTY PSU BANK (+7.88%) and NIFTY REALTY (+5.72%) stocks were the biggest performers. From the F&O space, ADANIENT (+29.42%), RPOWER (+19.17%) and RELINFRA (+14.98%) were the leaders.
MARKET OUTLOOK
As shown on the daily chart, NIFTY is on the verge of a fresh breakout from its all-time high of 11856. Going ahead, a move above the same might extend the gains towards 12000 and above levels. Traders holding long positions in index futures are advised to revise their stop loss below 11580 (in spot).
In case of any consolidation or profit booking, 11750 – 11690 levels might act as intermediate support where the buying could remerge.
SBIN : WEEKLY CHART
Outlook : Bullish
Disclaimer
Previous Story
Share Market Today - 22nd May 2019
NIFTY Daily CHART : The index Nifty registered its all-time high of 11833 during yesterday’s session but failed to sustain higher. In the end it closed with a loss of more than 100 points to close near 11700 mark. Meanwhile, the Nifty Bank index lost around 450 points. On the sectoral front, all the group indices closed in negative terrain. With regards to losers, NIFTY AUTO (-2.52%) and NIFTY MEDIA (-2.32%) stocks were the worst performers. From the F&O space, TATAMOTORS (-7.03%), DISHTV (-6.17%) and IDBI (-5.94%) were the laggards. MAKRET OUTLOOK Although we witnessed a fresh breakout in NIFTY Spot at all time high but the index failed to sustain at higher level which resulted in a candlestick pattern which is not so encouraging for the bulls. It resembles a bearish DCC (Dark Cloud Cover) which indicates some profit booking. Thus, going ahead a move below yesterday’s low of 11682 might extend this profit booking towards 11590. Overall, we maintain our broader bullish stance and thus advise traders to go long on a decent fall. The stop loss for long positions in index should be placed below 11400 and on the upside, index has potential to sneak above 12000 mark. On the upside, above 11183 would negate the DCC pattern which would pull the index towards our expected target. INDIGO : WEEKLY CHART Outlook : Bearish The given above weekly chart of INDIGO depicts that the stock has been trading in a broadening kind of pattern since the year 2015 This pattern resembles a ‘Broadening Top’ formation and as per the same the stock could proceed towards its lower end in the coming months Even the placement of weekly RSI shows top out sign Thus, trader holding long positions in the stock should exit the same on every rise towards 1500 - 1600 The view would get negated on a weekly close above 1650 and on the downside the stock has potential to test 1200 in the coming weeks Disclaimer)
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Daily Currency Research Report – 22nd May 2019
CURRENCY PIVOT LEVELS CROSS CURRENCY UPDATE USDINR 29 MAY 2019 EXPIRY OPTION RBI REFERENCE RATE (MAY 21 2019) USDINR (MAY FUTURE)Dollar/rupee witnessed a cautious trade ahead of election results amid thin volumes and after hitting a day low 69.7025 settled at 69.7825 almost flat. Crude oil futures surged on escalating tensions between the US and Iran and on signs that producer club OPEC will continue withholding supply this year which supported it around 69.70 levels. Technical, A strong break down of Ascending Channel on the EOD chart is creating probability for bearishness towards 68.80 and below. But, sentiment expects to remain cautious until the actual results scheduled for Thursday. On the downside, pair would need to break below 69.40 in order to extend recent loss else any rise towards 70-70.10 is expected to attract near term selling activities. On the upside, massive resistance is seen at 70.50-70.75 Trend –Volatile GBPINR (MAY FUTURE)Pound/Rupee made a new multiweek low 88.5725 and settled at 88.62 compared to previous day close of 88.9875 levels. It took deep on concerns Prime Minister Theresa May's Brexit deal will not pass through the UK parliament while a strong dollar also weighing. Speculations over her replacement with a pro-Brexit PM eventually raises the risk of a no-deal Brexit and might continue fueling the GBP weakness, traders said. Technical, Failure of trend reversal candle stick on the EOD chart is indicating for strong selling pressure in GBPINR. Pair unable to break its resistance 89.10 and retreated from 89.00. Today, a break below 88.40 would extend looses towards 88.00-87.50. Else, any rise towards 88.90-89.00 could attract selling pressure. Trend –Volatile MAJOR ECONOMIC DATA & EVENTS RELEASED YESTERDAY / EARLIER TODAY Japan's exports fell 2.4% in April from a year earlier, down for a fifth straight month. That compared with a 1.8% drop seen by analysts in a Reuters poll, and a similar 2.4% decline in March. MAJOR ECONOMIC DATA & EVENTS SCHEDULE TODAY Note: Economic data expectations are based on median forecast by economists or Reuters and Bloomberg survey. Here positive impact indicates currency could appreciate and negative indicates currency could depreciate in comparison with US Dollar.Technical Chart Source: TickerNews Source: Ticker news, Forexfactory.com, forexlive.com and investing.com*Dos – Depends on Statement. DOV – Depends on Votes.Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (IndiaNivesh), for use by the recipient as information only and is not for circulation or public distribution. This document is not to be reproduced, copied, redistributed or published or made available to others, in whole or in part without prior permission from us. This document is not to be construed as an offer to sell or the solicitation of an offer to buy any currency pair. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our currency opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the currencies mentioned in the report.)