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Published on 14/02/2018 11:57:26 AM | Source: Reliance Securities Ltd

NIFTY finished trade with the gain of 85 points at 10,539 mark - Reliance Sec

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

Technical Research

MARKET SYNOPSIS

* On Monday, NSE-NIFTY oscillated in the narrow range post a gap-up opening and finally, settled the session on a firm note, where index has registered low of 10,485 and high of 10,556 levels before closing the day.

* NIFTY finished trade with the gain of 85 points at 10,539 mark.

* NSE Cash segment reported turnover of Rs30,902 crore as compared to Rs31,583 crore earlier.

* Overall market breadth remained positive, where 1427 stocks advanced against 378 declined stocks.

* Positive trend was observed across all the sectoral indices during the day barring PSU Bank and IT, which declined by 0.2% and 0.6%, respectively. Realty and Pharma indices emerged as top gainers with the increase of 1.3% and 1.7%, respectively.

NSE-NIFTY OUTLOOK

* NSE-NIFTY begun brand new week on a stable note, where index tried to recover partial weekly losses and regained 10,500 mark on back of bounce back. Due to recent rebound, RSI and Stochastic has halted further decline, but MACD has extended its fall. Though overall market breadth remained positive, continuous fall in the market participation is indicating further weakness in the market. As mentioned earlier, our negative view will remain intact for NIFTY, where index will face sell on rise. Initially, the recent swing low (placed at 10,275 mark) will act as a key reversal point, but in case of major decline, NIFTY will find strong support at 10,000 level. On the higher side, NIFTY will face resistance in the range of 10,700-10,800, where its short-term moving averages are placed (20-day EMA and SMA respectively).

* As for the day, support is placed at around 10,480 and then at 10,400 levels, while resistance is observed at 10,600 and then at 10,700 levels.

Intraday Picks

FEDERALBNK (LTP: 95) BUY For today’s trade, long position can be initiated at Rs 93-94 for target of Rs 97 with a strict stop loss of Rs 92. Traders are advised to avoid early morning whipsaw.

TECHM (LTP: 590) SELL For today’s trade, short position can be initiated at Rs 596-600 for target of Rs 582 with a strict stop loss of Rs 605. Traders are advised to avoid early morning whipsaw.

Derivatives Snapshot

* Nifty opened higher on back of global cues and continued to remain in positive tandem to close at the near day’s high. Nifty closed down up by 85 points at 10,540 levels. Among the nifty stocks 33 stocks advanced and 17 declined during the day.

* Sectorally, positive momentum was witnessed across sectors with the highest gains in Banks, Auto, and Realty by 1.1%, 1.2% and 1.7% respectively while IT and PSU Banks declined by 0.6% and 0.2% respectively. ff Broader market indices remained strong with NIFTY 100,200 and 500 to close up by 1% average while midcap indices and small cap indices gained by 1.4% and by 1.8% respectively.

* Nifty February futures ends with 3 point premium at 10,543 mark, while on other hand, Bank Nifty February futures ended with the premium of 5 points at 25,706 mark.

* Nifty recovered from the support levels and gains to close above 10,500 levels, we continue to believe it will trade in range of 10,400- 10,700 levels over the next few days. Nifty 10,500 PE added some OI of 3.5 lakhs as traders hedged some positions ahead of the mid week holiday while on the higher side 10,700 CE has seen writing in today’s trade.

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

Stock Activity: Lupin and DLF have observed some amount of long build up in today’s trade.

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