Published on 7/12/2017 9:33:07 AM | Source: GEPLCapital Ltd

NIFTY breaks below 10050, even as RBI policy proves a non-event - GEPL

Posted in Market Outlook| #GEPLCapital Ltd #Market Outlook

*  The NIFTY opened @ 10088.80, a GAP-DOWN of 30 points over Tuesday. The first hour saw NIFTY respect the earlier day’s LOW @ 1069, but the writing was pretty clear on the wall. The NIFTY had quiet convincingly traded below the 10100 mark almost all through the day. The intermediate move till the RBI event was a SIDEWAYS & CAUTIOUS tranche that was followed up with a volatile yet band trade with the RBI policy proving to be a non-even for NIFTY. At close, the NIFTY shut shop @ 10044.10 DOWN by 74.15 points or 0.73%.

*  The broader indices once again split on either side of the benchmark NIFTY, and this time around both closed in the NEGATIVE. While the NIFTY MID100 FREE closed DOWN by 1.03% to close @ 19551.95; the NIFTY SML100 FREE closed DOWN by 0.49% to close @ 8450.65. The broader move once again looked clearly in favor of the BEARS, with 572 advances to 1117 declines. The INDIA VIX astonishingly enough, maintained status-quo and yet MOVED-UP further by half a percent to close @ 15.09 mark.

*  Almost all the sectoral & thematic indices closed in the RED. On one hand, the defensives like NIFTY IT & NIFTY ENERGY were able to buck the negative closing; NIFTY PSU BANKS & NIFTY INFRA faced the brunt of the BEARS, as they went down by more than a percent.

*  The index has now confirmed a LOWER TOP @ 10410 (created on 28.11.2017) as well as a LOWER BOTTOM with breach of 10100 mark quiet convincingly. The same has now brought us in striking distance of the psychological 10000 mark. The index thus may move on course to further correction to lower SUPPORTS @ 9950 on short term scale and 9750 on the medium term scale. Albeit a dead cat bounce may not be ruled out, as the daily & hourly RSI are trading around 30 mark, indicating an oversold position. The earlier SUPPORT, that has now turned into a RESISTANCE @ 10230-10250. Till then one needs to play BEARS.

Technical Snapshot



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