Published on 11/01/2018 11:58:09 AM | Source: Reliance Securities Ltd

NSE-NIFTY remained in pressure post a flat opening and later violated psychological mark-10,600 - Reliance Sec

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

Technical Research


* Yesterday, NSE-NIFTY remained in pressure post a flat opening and later violated psychological mark-10,600 (slipped to 10,592 level) amidst higher level profit booking. However, in the second half index tried to recover the losses with the help of corresponding bounce back and finally, finished trade at 10,632 mark, with the loss of 5 points.

* NSE Cash segment reported turnover of Rs36,348 crore as compared to Rs37,028 crore earlier.

* Overall market breadth remained negative, where 559 stocks advanced against 882 declined stocks.

* Mixed trend was observed across all the sectoral indices during the day, where Realty and IT emerged as top gainers with the increase of 2.2% and 1.3% respectively. However, PSU Bank index reported the highest decline (i.e. 1.4%).


* NSE-NIFTY failed to continue prior daily rising trend and closed the session on a flat to negative note. Despite a flat move, RSI and MACD had extended their northward journey. However Stochastic oscillated around its overbought zone and overall market sentiment remained negative. Despite a mixed indications, our bullish view will remain intact for the index, where one should utilize any sideways movement or profit booking in the market to create fresh long. In case of decline, its short-term moving average (placed around 10,450 level) will work as key reversal point. On the higher side, NIFTY will face major hurdle at 10,700 level, as any close above that level will strengthen index to visit 10,900 mark.

* As for the day, support is placed at around 10,590 and then at 10,560 levels, while resistance is observed at 10,700 and then at 10,750 levels.

Intraday Picks

ASHOKLEY (PREVIOUS CLOSE: 128) SELL For today’s trade, short position can be initiated in the range of Rs130-131 for the target of Rs124-122 with a strict stop loss of Rs133.

IGL (PREVIOUS CLOSE: 326) BUY For today’s trade, long position can be initiated in the range of Rs326-323 for the target of Rs334-338 with a strict stop loss of Rs320.

Derivatives Snapshot

* Nifty continues to trade in a narrow range keeping the broader markets range bound but IT stocks saw strong momentum scaling new 52 week high. Nifty closed down by 5 points at 10,632 levels. Among the nifty stocks 17 stocks advanced and 33 declined during the day.

* Sectorally, except for IT and Realty to gain by 2.2% and 1.3% we witnessed profit booking in banks, Media and Pharma to decline by 0.5% average for the day.

*  Broader market indices remained flat with NIFTY 100,200 and 500 to close down by 0.1% average while midcap indices and small cap indices declined by 0.2% and 0.1% respectively.

* Nifty January futures ends with 5 point premium at 10,637 mark, while on other hand, Bank Nifty January futures ended with the premium of 8 points at 25,625 mark.

* Nifty has ended once again in a doji, candle and has witnessed some profit booking in interest rate sensitive sectors. The trend reversal level will be 10,480 below which we expect sharp profit booking in midcaps and small caps. Nifty 10,500 PE has seen addition of 6.6 lakhs shares in today’s trade with OI increase to 76 lakhs shares.

Sectoral Activity: Amongst sectoral index, Auto and Media remained in focus with negative momentum.

Stock Activity: Eicher Motors and Sun TV observed build up in short position.


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