Kya Bolta Market

Market Footprint 15th Nov 2017 – Its all about Nifty – The decline continues……

Its all about Nifty – The index witnessed continuous decline for the third straight session as it sustained below the 10200 levels and declined sharply in the final hours on account of sustained selling and closed around the days lows below 10120 levels. Market on Wednesday declined on concerns over trade deficit that ballooned to an almost three-year high. Lacklustre earnings by some blue-chip companies also dampened investor’s sentiment. Risk-taking took a hit as the country’s exports entered negative territory after over an year, contracting 1.12% in October and imports surged. This showed up in trade deficit, which swelled to almost a three-year high of $14 billion last month. A subdued trend in Asia and a lower opening in Europe, tracking a fall in oil prices and doubts over US tax reforms, kept spirits low. The index witnessed continuous 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 below 10100 if the selling pressure continues. 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, as traders are weary of taking aggressive longs, and valuations have appeared stretched when compared with quarterly numbers. The index is still in a positive trend and these corrections should be considered healthy for the index till the index holds above 10000-9960 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 of10000 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 10100 levels intraday. 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 testing of levels around 25250 as the index declined sharply, but some late recovery due to buying in select private sector banks cut the losses to some extent and the index closed above 25300. The bank nifty will have strong support at 25240 levels intraday and immediate resistance is now placed around 25400 levels. Markets are pricing in the potential for a fiscal deficit target being pushed higher, with recent data showing pressures from both weak exports as well as high oil prices.

 

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