Kya Bolta Market

Market Footprint 14th Nov 2017 – Its all about Nifty – Nifty slips below 10200……

Its all about Nifty – The index witnessed continuous decline for the third straight session as the index tested levels below 10200 and closed below that crucial level, as index failed to sustain higher levels. Index ended lower after rising inflation numbers squeezed the headroom for an interest rate cut by the RBI at its policy review in December. Inflation at the wholesale level raced to a six-month high of 3.59% in October, fuelled by food articles, data released showed. Retail or consumer price index-based inflation, which came in on Monday, had jumped to a seven-month high of 3.58% in October. The index witnessed sharp decline in last few sessions and it has now closed below the crucial 10200 levels, immediate support for the index is seen around 10100 levels and we may see the index testing levels around 10150 levels in early hours today as the markets are expected to weak. The index in coming sessions is expected to face stiff resistance at 10250 levels and short term resistance for the Nifty spot is now seen around 10300-10400 range and we may find the index taking some time to breach these levels on the higher side. The index is still in a positive trend and these corrections should be considered healthy for the index till the index holds above 10000 levels, as we suggest that the index is in a consolidation mode now. Going forward any decline in the Nifty below the 10100 levels will lead to heavy action by bears and we may test levels of 10000 and lower. We maintain that the overall outlook will remain bullish till the index holds above the 10000 levels, in the near term. In medium term any decline and close below crucial level of10100 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 10150 levels. 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 declines as the volatile session witnessed some late selling pressure at higher levels and closed weak around 25400 levels. The bank nifty will have strong support at 25330 levels intraday and immediate resistance is now placed around 25500 levels. The outlook for Indian stocks continues to be of consolidation till clarity emerges on sustainability of growth in earnings which justify high valuations, as in last few days along with the fiscal slippage threat, geopolitical tensions in West Asia and subdued earnings have also dented markets sentiment.

 

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