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Published on 14/03/2018 5:25:42 PM | Source: GEPLCapital Ltd

Sector Report - IT, Bank , Metal - GEPL

Posted in Broking Firm Views - Sector Report| #GEPLCapital Ltd #IT Sector #Banking Sector #Metals Sector #Sector Report

NIFTY IT

Observation

* Prices hovering around the all time HIGHs over most of last two & half months. The same is seen in the form of a strong ENGULFING BULLISH candle on weekly charts, couple of weeks back, that almost ticked onto 3 week HIGHS.

* Prices after remaining closely in sync with the UPPER end of Bollinger band, have corrected & consolidated over last 6 weeks, indicating a BASING of the trade at higher levels.

* The very fact that an INDEX has sustained at higher levels while the broader NIFTY closed @ 15 week closing LOWS, shows the relative strength of the index.

* Daily RSI @ 57 and Weekly RSI @ 68, indicates the follow-up to the basic BULLISH trend.

*  Positive alignment of longer term moving averages between 11155 (200 DMA) and 12453 (50 DMA)

* Immediate Support: 12350 / 12000 

* Immediate Resistance: 13100 / 13380

* Actionable: Pair Strategy :  Buy INFY & Sell WIPRO

Stock Watch

Positive: INFY, TCS, HCLTEH, HEXAWARE, KPIT, MINDTREE, TECHM, TATAELXSI.

Negative: WIPRO, OFSS, INFIBEAM.

NIFTY PSU BANK

Observation

* Drifting lower from freak 52 week highs of 4335.20 (created in October 2017) consistently since last 4 months.

* Lower Top Lower Bottom formation created on daily as well as on weekly charts over the above said period.

*Stock Watch Negative: CANBK, PNB, BANKBARODA, BANKINDIA, ORIENTBANK, ANDHRABANK. Positive: On weekly chart, it has also given an ABC pattern break down.

* The momentum indicator RSI, too is dipping downwards and currently located @ 27 mark on daily scale whilst the weekly scale has tipped below the 30 mark; which indicates to an impending DOWNTREND.

* Immediate Support: 2600 / 2450 

* Immediate Resistance: 3080 / 3350

* Actionable: Sell CANBK

Stock Watch

Negative: CANBK, PNB, BANKBARODA, BANKINDIA, ORIENTBANK, ANDHRABANK.

Positive:

NIFTY METAL

Observation

* Lower Top Lower Bottom on Daily, Weekly as well as on Monthly charts.

* We have seen that in the last week, the price has sustained way below medium term 13 (3913) & 34 (3720) exponential moving averages on weekly charts.

* The momentum indicator RSI, too is dipping downwards and currently located @ 30-45 mark on daily as well as weekly scale; after having failed to cross above 60 mark without any major buffer which is an add on cause for current Bearish momentum to sustain.

* Thus it seems to be a classical SELLING opportunity that has occurred at an intermediate lower top, that may bring down the index into a DEEP CORRECTIVE mode going ahead.

* Immediate Support: 3360 / 3100  Immediate Resistance: 3925 / 4100

* Actionable: Pair Strategy :  Buy HINDZINC & Sell HINDALCO

Stock Watch

Negative: HINDALCO, TATASTEEL, VEDL, NATIONALUM, SAIL, MOIL, JINDALSTEL.

Positive: HINDZINC, COALINDIA, WELCORP.

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