Kya Bolta Market

Market Footprint 8th Nov 2017 – Its all about Nifty – The declines continues……

Its all about Nifty – The index witnessed another session of profit booking, as the index declined on sustained selling at higher levels and ended the day at one week lows. Strong selling was seen in metal, oil and gas, telecom and realty sectors. Investors locked in gains amid lingering worries of a spurt in oil prices and its impact on inflation and fiscal deficit. The index after a positive opening failed to breach 10400 levels and on account of profit booking tested 10285 levels on the downside, but some late recovery helped the index close above 10300 levels. 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 to decline on sustained profit booking, the index consolidated around 25400 with negative bias. The bank nifty will have strong support at 25200 levels intraday and immediate resistance is now placed around 25450 levels. Market is showing signs of consolidation as investors took one step back from riskier assets due to rising oil price and the resultant impact on inflation and deficit. Foreign portfolio investors net purchased shares worth Rs461.47 crore on Tuesday, as per provisional data.

 

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