Published on 9/01/2018 11:53:02 AM | Source: Reliance Securities Ltd

The Nifty support is placed at around 10,560 and then at 10,490 levels - Reliance Sec

Posted in | #Market Outlook #Reliance Securities Ltd


Technical Research

MARKET SYNOPSIS

* NSE-NIFTY managed to surpass the psychological hurdle of 10,600 mark in the initial trades and later oscillated above that mark before recording new life-timehigh of 10,631 level. Finally, NIFTY closed the session with the gain of 65 points at 10,624 level.

* NSE Cash segment reported turnover of Rs37,694 crore as compared to Rs38,343 crore earlier.

* Overall market breadth remained positive, where 1104 stocks advanced against 726 declined stocks.

* Positive trend was observed across all the sectoral indices during the day barring PSU Bank (declined marginally), where Media, IT and Pharma indices emerged as top gainers with the increase of 1.2% to 1.4%.

NSE-NIFTY OUTLOOK

* NSE-NIFTY began brand new week on a strong note, where positive global cues and buying across the board helped index to record new high. Due to continuous rise in the index, RSI and Stochastic had extended their northward journey, MACD has given positive cross-over and overall market sentiment remained positive. Major technical indicators are positive, hence 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, the index will continue to find strong support around 10,400 level, which is coinciding with its short-term moving averages and prior multiple highs. On the higher side, index will face major hurdle at 10,700 level.

* As for the day, support is placed at around 10,560 and then at 10,490 levels, while resistance is observed at 10,600 and then at 10,650 levels.

Intraday Picks

ITC (LTP: 266) BUY

For today’s trade, long position can be initiated at Rs 264-266 for target of Rs 271 with a strict stop loss of Rs 262. Traders are advised to avoid early morning whipsaw.

MGL (LTP: 1098) BUY

For today’s trade, long position can be initiated at Rs 1094-1087 for target of Rs 1125 with a strict stop loss of Rs 1079. Traders are advised to avoid early morning whipsaw.

Derivatives Snapshot

* Nifty opened higher on back of global cues and continued its momentum to close at the high point of the day Nifty closed up by 65 points at 10,623 levels. Among the nifty stocks 37 stocks advanced and 13 declined during the day.

* Sectorally, it was broad based with positive momentum across sectors and stocks with the highest gains in Media, IT, Pharma and Realty to gain by 1.2% average while PSU Banks remained flat to negative by 0.2%.

* Broader market indices remained strong with NIFTY 100,200 and 500 to close up by 0.6% average while midcap indices and small cap indices gained by 1.1% and 1.5% respectively.

* Nifty January futures ends with 8 point premium at 10,631 mark, while on other hand, Bank Nifty January futures ended with the premium of 49 points at 25,725 mark.

* Nifty continued to close at all time high and we continue to maintain our target of 10,750 levels on the upside, the result season will provide individual sectors wise trend and outlook. The trend reversal level will be 10,480 below which we expect sharp profit booking in midcaps and small caps.

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

Stock Activity: Sun Pharma and ITC observed build up in long position.

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