Published on 11/09/2017 5:52:53 PM | Source: GEPLCapital Ltd

Sector Report : Nifty Metal, PSU, MNC and Pharma - GEPL

Posted in Broking Firm Views - Sector Report | #Banking Sector #Metals Sector #Pharma Sector #Mining Sector #Sector Report


Observation

* The sector is in medium to long term Bullish orbit.

* Higher Top Higher Bottom formation since last 5 months.

* Last week, the sector made a 52 week high of 3702.80 and also closed near that level which is a positive sign for the coming days.

* We have seen that the medium term 13 WMA (3296) & 34 WMA (3087) exponential moving averages have remained positively aligned since last 15 months on weekly charts; which is an add on cause for current Bullish momentum to sustain.

* Daily RSI placed is in positive territory at 74 level.

* The support level is placed at 3470 – 3200 levels whereas the resistance zone is placed at 3880 - 4020.

* Actionable: Pair Strategy :  Buy TATASTEEL & Sell COALINDIA 

 

Stock Watch

Positive: TATASTEEL, VEDL, HIDNALCO, JSWSTEEL, HINDZINC, NMDC.

Negative: ORISSAMINE, COALINDIA.

 

Observation

* The sector is in medium to long term Bullish orbit since March 2017 after breaching the major hurdle at around 11000 level in May 2017.

* Higher Top Higher Bottom pattern formed on all the time frames such as Daily, Weekly & Monthly.

* We have seen that the price sustained above medium term 13 (12700) & 34 (11860) exponential moving averages since last 9 months on weekly charts; which shows Bullish momentum to sustain.

* We have seen the momentum indicator RSI is in placed positive region @ 70 mark; which is an add on cause for current negative sentiment.

* The support level is placed at 12700 - 12470 levels whereas the resistance zone is placed at 13880 – 14250.

* Actionable: Pair Strategy :  Buy COLPAL 

 

Stock Watch

Positive: ASHOKLEY, VEDL, COLPAL, MARUTI, HINDUNILVR.

Negative: ABB, OFSS, GSKCONS.

 

Observation

* The Sector has made a 52 week high @ 3921.45 in the month of May 2017 and after that it could not sustained at higher levels and continuously drifting down to lower range since past 3 months.

* The Sector is also trading in a downward slopping channel pattern since May 2017.

* We have seen that the price sustained below medium term 13 (3388) & 34 (3373) exponential moving averages consecutively since last 5 weeks on weekly charts; which is an add on cause for current Bearish momentum to sustain.

* We have seen the momentum indicator like RSI is moving towards downside and currently located @ 34 mark; which is an add on cause for current negative sentiment.

* The support level is placed at 3140 - 2980 levels whereas the resistance zone is placed at 3450 – 3670.

* Actionable: Strategy : Sell UNIONBANK 

 

Stock Watch

Negative: UNIONBANK, ORIENTBANK, ALBK, BANKBARODA, SYNDIBANK, CANBK.

Positive: -

 

Observation

* The prices taking strong resistance @ 9060 - 9080 level on daily chart which is around 38.2% Fibonacci Retracement level of previous fall from its recent swing high of 10259.65 (July 2017) to 8314.5 (Aug 2017).

* Lower Top Lower Bottom formation maintained on almost all the time frames such as daily, weekly & monthly charts.

* We have seen that the price sustained below medium term 13 (9246) & 34 (9780) exponential moving averages since last 10 months on weekly charts; which shows Bearish momentum to sustain.

* The support level is placed at 8460 - 8200 levels whereas the resistance zone is placed at 9130 – 9330.

* Actionable: Pair Strategy :  Buy CADILAHC & Sell GLENMARK

 

Stock Watch

Negative: GLENMARK, SUNPHARMA, DIVISLAB, LUPIN, DRREDDY.

Positive: PEL, AUROPHARMA, CADILAHC.

 

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