Kya Bolta Market

Market Footprint 6th 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 closed the day flat as traders were seen taking profits off the table. Auto and consumer durables stocks were driving the uptrend, but pessimism was seen due to rising oil prices, limiting the gains, and the Nifty slid from record and ended flat after profit went off the table. Investors observed usual caution following developments related to shake-up in Saudi Arabia and President Donald Trump commencing his Asia trip with a visit to Japan. Better-than-expected earnings from index heavyweights made investors build on their bets, and rising oil prices led to good buying in oil sector stocks, on expectations of better refining margins. 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. 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 profit booking as the index after a positive opening failed to sustain at higher levels and declined on profit booking to close around 25600 levels. The bank nifty will have strong support at 25450 levels intraday and immediate resistance is now placed around 25700 levels. State owned explorer ONGC gained sharply, adding 3.81% at Rs198.65, after global crude prices jumped to a more than two-year high. Others top gainers were Cipla, TCS, Wipro, SBI, Adani Ports and HDFC Ltd, rising by up to 2.47%. Stock of M&M rallied 2.49% after reports that the company would consider bonus shares issue later this week.

 

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