Published on 15/11/2017 11:57:38 AM | Source: Reliance Securities Ltd

NSE-NIFTY continued prior daily downtrend and slipped to 3-week low - Reliance Sec

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


Technical Research

MARKET SYNOPSIS

* Yesterday, NSE-NIFTY witnessed minor rebound post a flat opening, but later index reversed from sub-10,250 mark and remained in pressure during the day. Finally, after registering low of 10,176 mark, index finished trade at 10,187 level, with cut of 38 points.

* NSE Cash segment reported turnover of Rs33,870 crore as compared to Rs30,448 crore earlier.

* Overall market breadth remained negative, where 699 stocks advanced against 1034 declined stocks. * Negative trend was observed across all the sectoral indices during the day barring Auto and Realty (up by 0.2% and 0.5%), where Infra index emerged as a top loser with the decrease of 1.2%.

 

 

NSE-NIFTY OUTLOOK

* NSE-NIFTY continued prior daily downtrend and slipped to 3-week low, where it lost 10,200 mark. Due to further fall in the index, RSI slipped below 50-mark and also, Stochastic remained below its average. As mentioned earlier, our near-term view will remain negative, but sideways movement or some rebound cannot be ruled out before index resumes its southward journey, as NIFTY is trading near to its medium-term moving average 50-day EMA (placed at 10,140 level). On the higher side, major hurdles are placed at 10,385 and then at 10,500 levels respectively. However, if NIFTY violates its medium-term moving average, it will find strong support at psychological level-10,000.

* As for the day, support is placed at around 10,140 and then at 10,100 levels, while resistance is observed at 10,250 and then at 10,300 levels.

 

Intraday Picks

CASTROL (LTP: 398) BUY For today’s trade, long position can be initiated at Rs 395 for target of Rs 405 with a strict stop loss of Rs 391. Traders are advised to avoid early morning whipsaw.

PIDILITIND (LTP: 822) SELL For today’s trade, short position can be initiated at Rs 829 for target of Rs 810 with a strict stop loss of Rs 838. Traders are advised to avoid early morning whipsaw.

 

Derivatives Snapshot

* Nifty failed to hold the support levels of 10,200 with weakness in index pivotal and closed at the day’s low. Nifty closed down by 38 points at 10,186 levels. Among the nifty stocks 16 stocks advanced and 32 declined during the day.

*  Sectorally, Auto and Realty ended flat with gains of 0.5% and 0.2% while PSU Banks, Metals, FMCG and Media declined by 0.5% average for the day.

* Broader market indices remained under pressure with NIFTY 100,200 and 500 to close down by 0.4% average while midcap indices and small cap indices declined by 0.2% and 0.6% respectively.

* Nifty November futures ends with 48 points premium at 10,234 mark, while on other hand, Bank Nifty November futures ended with the premium of 115 points at 25,401 mark.

* Nifty has closed at the support levels and a short term bounce cannot be ruled out for a target of 10,300 -10330 levels. Nifty 10,400 and 10,500 CE saw call writing with OI increasing to 56 lakhs while on the downside 10,000 has the highest OI of 55 lakhs shares.

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

Stock Activity: PNB and Tata Steel observed build up in short position.

 

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