Kya Bolta Market

Market Footprint 3rd Nov 2017 – Its all about Nifty – Markets continue to rally……

Its all about Nifty – The index witnessed another positive session as it tested new highs again, and some profit booking at higher levels limited the gains and the index managed a close above 10450 closing positive for the week. Services sector activity in India expanded for the second consecutive month in October, driven up by rising new orders the fastest pace since June amid positive demand conditions, according to a monthly Purchasing Managers’ Index survey. Global leads turned for the better after appointment of Federal Reserve Governor Jerome Powell as the new chief of the US central bank and the unveiling of tax reforms by House Republicans in Washington. Earnings optimism among investors grew, too as a set of good numbers were reported by companies like PNB. We maintain that the index has in last two 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 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 strong gains and the index managed to trade above the criucial 25500 levels and close well above it, on account of strong move in PSU heavy weights, SBI & PNB after PNB quoted better than expected numbers. The bank nifty will have strong support at 25450 levels intraday and immediate resistance is now placed around 25700 levels. According to provisional data released by the stock exchanges, foreign portfolio investors bought shares worth a net Rs1,032.88 crore, while domestic institutional investors sold shares to the tune of Rs456.51 crore on Thursday.

 

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