Kya Bolta Market

Market Footprint 10th Nov 2017 – Its all about Nifty – Nifty sustains above 10300……

Its all about Nifty – The index witnessed another volatile session with positive bias as the index managed to sustain above the 10300 levels, and some last hour buying accompanied with short covering, led to a a positive close in the index. Markets closed with modest gains on Friday, giving a guarded response to the GST council’s decision to reduce tax rate on a host of daily-use items. The GST Council on Friday provided some relief to several sectors by slashing tax rates on a host of consumer items to 18% from the current 28%. It also trimmed the list of items attracting the top 28% tax rate to just 50, from the 227 previously. We maintain that the index has in last three weeks, sustained well above the range of 10200-9900 that it had been trading since few weeks, and maintained the gains which indicates a very positive outlook for the markets in coming days, but some profit booking at higher levels is not ruled out. The index witnessed some support at lower levels today and has closed well above strong support levels of 10300, in coming days for the index to continue the current rally it should now hold above the 10300-10260 levels, and we are expected to face stiff resistance around 10400 levels in the index. On the other hand we have immediate supports near the above mentioned levels of 10300, which should act as intraday support levels also. Any decline in the Nifty below the 10300 levels will open up levels of 10240 and lower and may lead to heavy action by bears. We maintain that the overall outlook will remain bullish till the index holds above the 10200 levels, in the near term. In medium term any decline and close below crucial level of 10200 will be negative for the index, and we may witness declines till 9800 levels also. Traders are advised to be cautious and carry forward aggressive long positions till the index manages to sustain above the 10250 levels. Factors like domestic Q2 earnings season and global liquidity will drive the index in coming weeks, and we may witness some consolidation with stock specific moves. And we also advise caution in aggressive long positions, as the market breadth and volumes at highs have not been very positive in last few sessions.

Its all about Nifty – The banking index witnessed a session of strong gains as the index witnessed a volatile session, as it opened the day with small gains, and tested lower levels around 25300, but some late buying activity led to a positive close above 25500 levels which is a good sign for the bulls. The bank nifty will have strong support at 25330 levels intraday and immediate resistance is now placed around 25650 levels. On the sectoral front capital goods sector was the major gainer for the day, gaining 1.87%, Consumer durables, banking and PSU advanced too. The broader market showed a mixed movement, with small-cap rising 0.07% and mid-cap declining 0.09%. The index posted weekly gains of 1.25% as it rose 130.75 points in the week.

 

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