Published on 14/11/2017 11:30:08 AM | Source: Reliance Securities Ltd

NSE-NIFTY begun week on a negative note, where index failed to hold 10,300 mark - Reliance Sec

Posted in Market Outlook | #Market Outlook #Reliance Securities Ltd


Technical Research

MARKET SYNOPSIS

* On Monday, NSE-NIFTY remained in tremendous pressure right from the beginning, where lower level consolidation failed to save index from falling further and later extended losses. Finally, after registering high of 10,334 and low of 10,216 levels during the day, NIFTY closed the session with loss of 97 points at 10,225 level.

* NSE Cash segment reported turnover of Rs30,448 crore as compared to Rs36,053 crore earlier.

* Overall market breadth remained negative, where 643 stocks advanced against 1096 declined stocks.

* Negative trend was observed across all the sectoral indices during the day barring IT (0.1%), where Realty and Metal indices emerged as top losers with the decrease of 1.4% and 1.9% respectively.

 

 

NSE-NIFTY OUTLOOK

* NSE-NIFTY begun week on a negative note, where index failed to hold 10,300 mark and settled below its short-term moving average (20-day EMA) for the first time since 6th Oct, 2017. NIFTY had taken support around previous high connecting trend line and Stochastic also slipped into the oversold zone on the daily chart, but our near-term view will remain negative on the index, as fall in the key technical indicator-RSI and negative market breadth are signaling further weakness. In case of further decline, NIFTY will find support around its medium-term moving average 50-day EMA (placed at 10,140 level) and then at psychological level-10,000. However, on the higher side, major hurdles are placed at 10,385 and then at 10,500 levels respectively.

* As for the day, support is placed at around 10,180 and then at 10,100 levels, while resistance is observed at 10,300 and then at 10,385 levels.

Intraday Picks

DCBBANK (LTP: 182) SELL For today’s trade, short position can be initiated at Rs 185 for target of Rs 178 with a strict stop loss of Rs 188. Traders are advised to avoid early morning whipsaw.

HCLTECH (LTP: 869) BUY For today’s trade, long position can be initiated at Rs 864 for target of Rs 883 with a strict stop loss of Rs 855. Traders are advised to avoid early morning whipsaw.

 

Derivatives Snapshot

*  Nifty continued to trade lower and ended at day’s low with profit booking across sectors and stocks for the day. Nifty closed down by 97 points at 10,225 levels. Among the nifty stocks 13 stocks advanced and 37 declined during the day.

* Sectorally, except for IT to end flat by 0,2%, Realty, Metals, FMCG, and Media to decline by 1.3%, 1.95 0.9% and 0.5% respectively.

* Broader market indices remained under pressure with NIFTY 100,200 and 500 to close down by 0.9% average while midcap indices and small cap indices declined by 0.4% and 0.7% respectively.

* Nifty November futures ends with 44 points premium at 10,368 mark, while on other hand, Bank Nifty November futures ended with the premium of 105 points at 25,463 mark.

* Nifty has corrected by 265 points from its peak, a short term bounce cannot be ruled out from the support levels of 10,170. Nifty 10,200 PE has seen unwinding of 7 lakhs shares in today’s trade while on the the higher side OI of 10 lakhs shares call writing was in 10,400 CE. Capping the upside.

Sectoral Activity: Amongst sectoral index, Metals and Consumer remained in focus with negative momentum.

Stock Activity: VEDL and Titan observed build up in short position.

 

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