Kya Bolta Market

Market Footprint 7th Nov 2017 – Its all about Nifty – Sharp decline from highs……

Its all about Nifty – The index witnessed a session of profit booking, as the index declined in today’s session and tested levels around 10350 and closed weak around the day’s lows. A sell-off spurred by rising crude oil prices caused the biggest single-day percentage fall in the index since 27 September on Tuesday. The rupee fell the most in seven weeks, and government bond yields surged, as investors fretted that expensive oil may led to a fiscal slippage, increase inflationary pressures and lower the chances of the RBI cutting interest rates in its December monetary policy review. Brent crude touched a 28-month high of $ 64.10 per barrel on an anti-corruption purge by Saudi Arabia’s crown prince. 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 corrected from all time highs today and has closed around strong support levels of 10350, in coming days for the index to continue the current rally it should now hold above the 10300-10260 levels, and we are expected to face stiff resistance above 10400 levels in the index. 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 10300 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 10200 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 another session of profit booking as the index continued its negative trend for second consecutive session, and the index declined by almost 1% to close below 25400 levels. The bank nifty will have strong support at 25330 levels intraday and immediate resistance is now placed around 25480 levels. Shares of few oil marketing companies (OMCs) and aviation firms declined on rising crude prices. The fall in rupee, led to a rally in technology stocks as the IT index bucked the trend rising 2% today. A cheaper rupee translates into better export earnings. The index was at a 15-month high on valuation comfort.

 

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