The week went by was fully dominated by the bears on the D – Street amid the sharp selloff in broader markets. The index Nifty spot ended in red during all the five trading sessions of the week. During the process, Nifty spot nose dive from the peak of 10950 and almost met 10600 mark. Eventually, the index lost more than 2% from its previous close (Week on Week). Meanwhile, the Nifty Bank index ended with a loss of around 1.83% and that too below 27000 mark.
In our previous edition, we discussed about the reversal pattern known as “Evening Star” near the hurdle of 11100. The impact of the pattern was clearly evident during the week. Now at this juncture, Nifty has found support at the rising trend shown above. Also, below the trend line there is a previous swing low of 10580 which might act as a strong support for the coming week. The support around the trend line coincides with 78.6% Fibonacci retracement levels of previous rally. Thus going ahead we expect the mentioned supports to absorb the selling pressure. On the upside, a move above 10800 could bring the bulls back in action which can take Nifty back to 11000 mark. Traders can add aggressive long in index futures once Nifty starts trading above the mentioned resistance level.
Posted by Mehul Kothari | Published on 15-FEB-2019
MARKET RECAP
KEY MARKET DATA POINTS
It has been six consecutive sessions where we witnessed selloff in our domestic markets where the benchmark indices started the session on a flat note but closed near day’s low. The index Nifty started the session on a quiet note but failed to clear the hurdle of 10800. During the second half, yet again we witnessed spike in volatility due to weekly expiry of Nifty and Nifty Bank index which dragged them much lower. However, as the day progressed Nifty Bank index managed to recover sharply and close with decent gain.
For a change, despite negative close the market breadth turned in the favour of advancing counters which indicates broad based buying. On the sectoral front, NIFTY MEDIA (+3.91%) and NIFTY PHARMA (+0.92%) stocks were the biggest gainers whereas NIFTY IT (-1.12%) and NIFTY FIN SERVICE (-0.57%) counters ended in loss. From the F&O space, YESBANK (+31.7%), CGPOWER (+20.89%) and DHFL (+16.51%) were the top performers.
MARKET OUTLOOK
Post yesterday’s correction, Nifty was forced to sneak below the placements of 50 DEMA & 100 DEMA. Now, as displayed on the daily chart, index is hovering just above the placements of 200 DEMA. At the same time, the support coincides with 78.6% Fibonacci retracement levels of previous rally and also there is a trend line support there. Thus, 10680 - 10660 could act as a strong support in the upcoming session. A breach of the same would extend the selling towards 10630.
On the upside, bullish sentiment would now resume 10800 mark. Traders can add aggressive long in index futures once Nifty starts trading above the mentioned resistance level. From the stock front, one should continue to stay hedge and avoid overleveraged positions since the heavy weights are yet to correct.
INFY – Daily Chart
STOCK OUTLOOK
The stock has confirmed breakdown from the pattern which resembles 'Rising Wedge'
This could result in some profit booking from higher levels
Even the momentum oscillators on the daily time frame have turned negative
Thus, we advise traders to go short in the stock near 745 with a stop 775 for the target of 715 - 680
Disclaimer)
Posted by Mehul Kothari | Published on 18-FEB-2019
MARKET RECAP
KEY MARKET DATA POINTS
The domestic markets maintained its losing streak for the eight consecutive sessions yesterday amid the rising geopolitical worries. Although the week kicked off on an optimistic note but similar to previous few sessions the benchmark indices ended the session near day’s low. After registering an intraday high of 10760, the index Nifty closed more than 100 points lower from there near 10650 mark. On the other hand, even Nifty Bank index remained under pressure to close with decent loss.
Once again market breadth remained in the favour of declining counters throughout the session due to broad-based selloff. On the sectoral front, NIFTY REALTY (+0.76%) and NIFTY MEDIA (+0.68%) stocks were the biggest gainers whereas NIFTY PSU BANK (-1.25%) and FMCG (-1.17%) counters ended in loss. From the F&O space, RPOWER (+11.27%), RCOM (+10.81%) and RELINFRA (+6.63%) were the top performers.
MARKET OUTLOOK
At this juncture, Nifty is hovering an inch away from the rising trend shown above. Also, below the trend line there is a previous swing low of 10580 which might act as a strong support for the coming session. The support around the trend line coincides with 78.6% Fibonacci retracement levels of previous rally.
Thus going ahead we expect the mentioned supports to absorb the selling pressure. On the upside, a move above 10760 could bring the bulls back in action which can take Nifty back to 10850 - 11000 mark. Traders can add aggressive long in index futures once Nifty starts trading above the mentioned resistance level. On the contrary, a close below 10580 could be dangerous for the bulls.Disclaimer)
NIFTY
Market Recap and Outlook
The week went by was fully dominated by the bears on the D – Street amid the sharp selloff in broader markets. The index Nifty spot ended in red during all the five trading sessions of the week. During the process, Nifty spot nose dive from the peak of 10950 and almost met 10600 mark. Eventually, the index lost more than 2% from its previous close (Week on Week). Meanwhile, the Nifty Bank index ended with a loss of around 1.83% and that too below 27000 mark.
In our previous edition, we discussed about the reversal pattern known as “Evening Star” near the hurdle of 11100. The impact of the pattern was clearly evident during the week. Now at this juncture, Nifty has found support at the rising trend shown above. Also, below the trend line there is a previous swing low of 10580 which might act as a strong support for the coming week. The support around the trend line coincides with 78.6% Fibonacci retracement levels of previous rally. Thus going ahead we expect the mentioned supports to absorb the selling pressure. On the upside, a move above 10800 could bring the bulls back in action which can take Nifty back to 11000 mark. Traders can add aggressive long in index futures once Nifty starts trading above the mentioned resistance level.
Disclaimer
Previous Story
MARKET RECAP KEY MARKET DATA POINTS It has been six consecutive sessions where we witnessed selloff in our domestic markets where the benchmark indices started the session on a flat note but closed near day’s low. The index Nifty started the session on a quiet note but failed to clear the hurdle of 10800. During the second half, yet again we witnessed spike in volatility due to weekly expiry of Nifty and Nifty Bank index which dragged them much lower. However, as the day progressed Nifty Bank index managed to recover sharply and close with decent gain. For a change, despite negative close the market breadth turned in the favour of advancing counters which indicates broad based buying. On the sectoral front, NIFTY MEDIA (+3.91%) and NIFTY PHARMA (+0.92%) stocks were the biggest gainers whereas NIFTY IT (-1.12%) and NIFTY FIN SERVICE (-0.57%) counters ended in loss. From the F&O space, YESBANK (+31.7%), CGPOWER (+20.89%) and DHFL (+16.51%) were the top performers. MARKET OUTLOOK Post yesterday’s correction, Nifty was forced to sneak below the placements of 50 DEMA & 100 DEMA. Now, as displayed on the daily chart, index is hovering just above the placements of 200 DEMA. At the same time, the support coincides with 78.6% Fibonacci retracement levels of previous rally and also there is a trend line support there. Thus, 10680 - 10660 could act as a strong support in the upcoming session. A breach of the same would extend the selling towards 10630. On the upside, bullish sentiment would now resume 10800 mark. Traders can add aggressive long in index futures once Nifty starts trading above the mentioned resistance level. From the stock front, one should continue to stay hedge and avoid overleveraged positions since the heavy weights are yet to correct. INFY – Daily Chart STOCK OUTLOOK The stock has confirmed breakdown from the pattern which resembles 'Rising Wedge' This could result in some profit booking from higher levels Even the momentum oscillators on the daily time frame have turned negative Thus, we advise traders to go short in the stock near 745 with a stop 775 for the target of 715 - 680 Disclaimer)
Next Story
MARKET RECAP KEY MARKET DATA POINTS The domestic markets maintained its losing streak for the eight consecutive sessions yesterday amid the rising geopolitical worries. Although the week kicked off on an optimistic note but similar to previous few sessions the benchmark indices ended the session near day’s low. After registering an intraday high of 10760, the index Nifty closed more than 100 points lower from there near 10650 mark. On the other hand, even Nifty Bank index remained under pressure to close with decent loss. Once again market breadth remained in the favour of declining counters throughout the session due to broad-based selloff. On the sectoral front, NIFTY REALTY (+0.76%) and NIFTY MEDIA (+0.68%) stocks were the biggest gainers whereas NIFTY PSU BANK (-1.25%) and FMCG (-1.17%) counters ended in loss. From the F&O space, RPOWER (+11.27%), RCOM (+10.81%) and RELINFRA (+6.63%) were the top performers. MARKET OUTLOOK At this juncture, Nifty is hovering an inch away from the rising trend shown above. Also, below the trend line there is a previous swing low of 10580 which might act as a strong support for the coming session. The support around the trend line coincides with 78.6% Fibonacci retracement levels of previous rally. Thus going ahead we expect the mentioned supports to absorb the selling pressure. On the upside, a move above 10760 could bring the bulls back in action which can take Nifty back to 10850 - 11000 mark. Traders can add aggressive long in index futures once Nifty starts trading above the mentioned resistance level. On the contrary, a close below 10580 could be dangerous for the bulls.Disclaimer)