Published on 14/09/2017 11:38:59 AM | Source: Reliance Securities Ltd

The Nifty support is placed at around 10,030 and then at 9,960 levels - Reliance Sec

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


Technical Research

MARKET SYNOPSIS

* Yesterday, NSE-NIFTY managed to continue prior up-move post a stable opening, where index rose to 10,131 level during the day, but later due to higher level profit booking surrendered intraday gains and slipped to 10,063 mark. ff Finally, NIFTY finished trade at 10,079 level, with cut of 14 points.

* NSE Cash segment reported turnover of Rs29,182 crore as compared to Rs28,295 crore earlier.

* Overall market breadth remained negative, where 599 stocks advanced against 1079 declined stocks.

* Mixed trend was observed across all the sectoral indices during the day, where Pharma index emerged as a top gainer with the increase of 1.6%. On the hand, Realty index reported the highest loss (1.3%).

 

NSE-NIFTY OUTLOOK

* NSE-NIFTY failed to record new life-time-high amidst profit booking in the index heavyweights and mixed global cues. As mentioned earlier, our view will remain positive for the index, where it will continue to face some hurdle around the life-time-high (10,140 level). However, major hurdle is placed at around 10,500 mark for the index (coinciding with the upper band of the rising channel). In case of any decline, its short-term and medium-term moving averages (20 and 50-DEMA) will work as key reversal point for the index, which are now placed around 9,930 and 9,850 levels respectively.

* As for the day, support is placed at around 10,030 and then at 9,960 levels, while resistance is observed at 10,140 and then around at 10,200 levels.

 

Intraday Picks

INFRATEL (LTP: 371) BUY

For today’s trade, long position can be initiated at Rs 369 for target of Rs 381 with a strict stop loss of Rs 365. Traders are advised to avoid early morning whipsaw.

 

HINDALCO (LTP: 248) SELL

For today’s trade, short position can be initiated at Rs 250 for target of Rs 243 with a strict stop loss of Rs 253. Traders are advised to avoid early morning whipsaw.

 

Derivatives Snapshot

* Nifty opened higher but failed to cross the previous high and minor profit booking was observed in the last one hour of trade. Nifty closed down by 14 points at 10,079 levels. Among the nifty stocks 19 stocks advanced and 32 declined during the day.

* Sectorally, it was a mixed bag with FMCG, Metals, and Realty witnessed profit booking to the tune of 1% average while Pharma, and PSU Banks gained by 1.6% and 0.3% respectively.

* Broader market indices remained flat with NIFTY 100,200 and 500 to close down by 0.2% average while midcap indices and small cap indices declined by 0.6% and 0.9% respectively.

* Nifty September futures ends with 12 points premium at 10,092 mark, while on other hand, Bank Nifty September futures ended with the discount of 10 points at 24,822 mark.

* As discussed Nifty resisted near the previous all time high and ended flat for the day. We continue to remain positive and expect some consolidation in broader range of 10,000-10,200 levels for next few days. Nifty 10,100 CE and 10,200 CE has seen addition of 3 lakhs shares average while on the downside 9,900 PE has the highest put OI average of 60 lakhs shares.

Sectoral Activity: Amongst sectoral index, Pharma and PSU Banks remained in focus with positive momentum.

Stock Activity: Glenmark and Canara Bank observed build up in long position.

 

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