Kya Bolta Market

Market Footprint 9th Nov 2017 – Its all about Nifty – Volatile session ends flat……

Its all about Nifty – The index witnessed a volatile session as the index declined sharply in the morning, session, but late recovery was seen in the index from lower levels in the final hours of trade, which helped the index to recover losses and close flat. Expectations that the GST Council may offer relief to some sectors through reduction in tax rates at its meeting on Friday supported the rebound. The Nifty ended flat, up 5.80 points, or 0.06%, at 10308.95. Intra-day, it touched a high of 10368.45 and a low of 10266.95. 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 a session of good gains as the index witnessed strong buying from lower levels and the index took support at 25250 levels and managed to breach 25450 levels on account of short covering, and closed above it. The bank nifty will have strong support at 25350 levels intraday and immediate resistance is now placed around 25500 levels. Renewed buying in consumer durables restricted further fall in the market on expectations of reducing taxes for products coming under 28% GST tax bracket. But investors are watchful ahead of key domestic macros CPI inflation and IIP data and global oil price fluctuation to get the direction.

 

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