Kya Bolta Market

Market Footprint 2nd Nov 2017 – Its all about Nifty – Profit booking at higher levels……

Its all about Nifty – The index witnessed a session of declines as the traders were seen booking profits at higher levels, and index although sustained 10400 levels, but traded weak with negative bias to close around 10425. Index again touched an all-time high during the day, but lost nerve soon to close lower after muted auto sales numbers and as investors digested the outcome of the Federal Reserve meeting. The US central bank left interest rates on hold at the end of its two-day policy meet, but remains on track for a December hike as it cited “solid rate” of growth. We maintain that the index has in last few sessions, sustained well above the range of 10200-9900 that it had been trading since few weeks, which indicates a very positive outlook for the markets in coming days, but some profit booking at higher levels is not ruled out, by investors and going forward 10480-10500 levels should act as strong resistance. The index in coming days is expected to face stiff resistance around 10500 levels and for the index to continue the current rally it should now hold above the 10300-10360 levels, on the other hand we have immediate supports near the above mentioned levels, which should act as intraday support levels also. Any decline in the Nifty below the 10350 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 10100 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. (View maintained)

Its all about Nifty – The banking index witnessed a session of consolidation above 25400, and the index witnessed some selling pressure as it failed to sustain 25600 levels, but strong supports were seen around 25400 levels. The bank nifty will have strong support at 25350 levels intraday and immediate resistance is now placed around 25620 levels. Subdued factory activity and auto sales numbers weighed on investor sentiment, but pharma’s rise on FDA positivity held index from slipping much. Auto, oil and gas all traded in the red, down by up to 0.93%. The broader markets outperformed the key indices as the mid-cap index rose 0.47% and small-cap 0.41%.

 

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