Published on 7/12/2017 12:47:23 PM | Source: Reliance Securities Ltd

Nifty opened lower on back of global cues and selling pressure continued - Reliance Sec

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

Technical Research


* Yesterday, NSE-NIFTY oscillated above the intraday support of 10,060 level after a dull opening, where due to RBI’s hawkish stance index witnessed sharp decline in the late noon trades and finally, shut the shop on negative note.

* NIFTY registered high of 10,104 and low of 10,033 levels during the day and finished trade with the loss of 74 points at 10,044 mark.

* NSE Cash segment reported turnover of Rs25,481 crore as compared to Rs25,496 crore earlier.

*  Overall market breadth remained negative, where 554 stocks advanced against 1188 declined stocks. * Negative trend was observed across all the sectoral indices during the day baring IT (rose by 0.5%), where Metal and PSU Bank emerged as top losers with the increase of 1.9% and 2.1% respectively. However, rest of the sectoral indices had reported loss of in between 0.3% to 1.3%.




* NSE-NIFTY resumed its southward journey after consecutive flat closing sessions, where index closed below its 100-day SMA for the first time since 29th September, 2017. NIFTY lost 355 points or 3.4% in the last seven trading sessions and dragged the key technical indicators into their oversold zone, but due to lack of market participation and negative market breadth it’s still difficult to confirm that when turnaround will take in the index. In case NIFTY violates psychological level-10,000, short-term volatility cannot be ruled out. On the lower side, the index will find support at 9,900 and then at 9,700 levels respectively. Now, NIFTY will face hurdle at around 10,200 level, which is coinciding with its 50-day EMA and its 38.2% Fibonacci Retracement level of prior up-move.

* As for the day, support is placed at around 10,000 and then at 9,960 levels, while resistance is observed at 10,100 and then at 10,180 levels.

Intraday Picks

M&MFIN (PREVIOUS CLOSE: 444) BUY For today’s trade, long position can be initiated at around Rs441-438 for the target of Rs452-460 with a strict stop loss of Rs434.

FORTIS (PREVIOUS CLOSE: 145) SELL For today’s trade, short position can be initiated at around Rs147- 149 for the target of Rs140-137 with a strict stop loss of Rs152.


Derivatives Snapshot

* Nifty opened lower on back of global cues and selling pressure continued post the credit policy to close at the low point of the day. Nifty closed down by 74 points at 10,044 levels. Among the nifty stocks 11 stocks advanced and 39 declined during the day.

* Sectorally, all sectors ended negative except IT with the highest decline in PSU Banks, Metals and Pharma to decline by 2.1%, 1.9% and 1.1%. Other sectors were down by 0.5% average for the day.

* Broader market indices remained weak with NIFTY 100,200 and 500 to close down by 0.8% average while midcap and small cap declined by 0.8 % average.

* Nifty December futures ends with 24 point premium at 10,068 mark, while on other hand, Bank Nifty December futures ended with the premium of 76 points at 24,927 mark.

* Nifty continued to trade lower with important averages being broken and now the positive momentum will be only beyond 10,200 levels. Nifty 10,000 PE has the highest OI of 83 lakhs while on the higher side 10,400 and 10,500 CE has witnessed writing in today’s trade.

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

Stock Activity: Jsw Steel and Sun Pharma observed build up in short position.


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