Published on 10/01/2018 12:14:11 PM | Source: Reliance Securities Ltd

Nifty traded in a narrow range with minor profit booking in index pivotal - Reliance Sec

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

Technical Research


* On Tuesday, NSE-NIFTY recorded new life-timehigh of 10,659 level in the initial trade, where despite a higher level profit booking index did stay strong above 10,600 mark during the day. Finally, NIFTY closed the session at 10,637 level with the gain of 13 points.

* NSE Cash segment reported turnover of Rs37,028 crore as compared to Rs38,343 crore earlier.

* Overall market breadth turned negative, where 719 stocks advanced against 1011 declined stocks.

* Mixed trend was observed across all the sectoral indices during the day, where Realty emerged as a top gainer with the increase of 2.8%. However, Media index reported the highest decline (i.e. 1.2%).


* NSE-NIFTY managed to continue prior daily up-trend and closed on the life-time-high level for straight third trading session in a row. Due to continuous rise in the index, RSI and MACD had extended their northward journey. However Stochastic reached to overbought zone and overall market sentiment turned 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 shortterm 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 10,600 and then at 10,560 levels, while resistance is observed at 10,700 and then at 10,750 levels.

Intraday Picks

IOC (LTP: 392) BUY For today’s trade, long position can be initiated at Rs 388-390 for target of Rs 401 with a strict stop loss of Rs 383. Traders are advised to avoid early morning whipsaw.

LUPIN (LTP: 923) SELL For today’s trade, short position can be initiated at Rs 931-935 for target of Rs 910 with a strict stop loss of Rs 945. Traders are advised to avoid early morning whipsaw.

Derivatives Snapshot

* Nifty traded in a narrow range with minor profit booking in index pivotal and traded mixed during the day. Nifty closed up by 13 points at 10,637 levels. Among the nifty stocks 19 stocks advanced and 31 declined during the day.

* Sectorally, it was a mixed bag with Realty, FMCG and IT to gain by 2.9%, 0.5% and 0.2% respectively while Pharma, Auto and PSU Banks declined by 0.5% average.

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

* Nifty January futures ends with 10 point premium at 10,647 mark, while on other hand, Bank Nifty January futures ended with the premium of 5 points at 25,709 mark

* Nifty has ended flat in a doji, and in case of failure to cross the recent high some profit booking cannot be ruled out from current levels in high beta sectors and stocks. The trend reversal level will be 10,480 below which we expect sharp profit booking in midcaps and small caps. Nifty 10,400 and 10,500 PE has seen addition of 5 lakhs shares in today’s trade with OI increase to 68 lakhs shares.

Sectoral Activity: Amongst sectoral index, Tyres and FMCG remained in focus with positive momentum.

Stock Activity: Asian Paints and Ceat observed build up in long position.

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