Published on 12/08/2017 11:13:16 AM | Source: Religare Securities Ltd

Nifty Metal index also settled lower in the passing week - Religare Sec

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


* Nifty corrected over 3% in the passing week, following geo-political tensions between the US and North Korea along with news from domestic front.

* Selling was witnessed across the board specially in the midcap and small cap counters. Further, weak results from the domestic front has also negatively impacted the market. For the coming week, we believe further correction or profit booking will remain in the higher side.

* Technically, Nifty has a strong support at 9650, if it fails to sustain above this level, then Nifty may slip down to 9550 mark. Considering the overall situation, we advise traders to stay light, hedged their leveraged positions and keep a close on domestic as well as global news.



* Though Nifty Energy index ended in red, but overall it looks strong on chart.

* After a strong rally of late, it has witnessed marginal profit booking from its record high and found the support around 12600 mark.

* Generally, such correction indicates a healthy pause before further rise and hence we expect a strong rally ahead.

* Stocks which traders can consider from this pack are HINDPETRO, IOC, POWERGRID, and BPCL.



* In line with the benchmark index, Nifty Metal index also settled lower in the passing week, however managed to hold above its crucial support zone around 3200 mark.

* Technically, the chart looks strong on multiple time frames and hence we expect a strong rebound is likely to witness in near term future.

* Individuals stocks from this space viz. JSWSTEEL and MOIL looks very attractive at the current level and can be considered for fresh buying.



* Consolidation phase that lasted for almost a month is now over as Reality Index registered breakdown from its consolidation range in passing week.

* Considering its chart pattern, we believe it may trade sideways in near term or even may further correct from the current levels.

* Hence, fresh buying in this space is not advisable for time being.



* Nifty Pharma was one of the worst performing sectoral pivot in the passing week as it lost nearly 8% on weekly basis.

* Its being now a year that Pharma index has failed to mark any noticeable change in its declining trend.

* Hence, it’s advisable to avoid this space for any fresh long trade. Traders can use bounce to go short as and when the opportunity arises.


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