WHAT LIES AHEAD : NEAR-TERM PIC­TURE

Flash News Investment - - TECHNICALS -

In­dian bench­mark in­dices suc­ceeded in break­ing their 7-day los­ing streak and re­bounded from the medium-term cru­cial sup­port lev­els. Geopo­lit­i­cal ten­sions with

North Korea and the US cre­at­ing war-like sit­u­a­tion, In­dian army an­nounc­ing sur­gi­cal strike at In­doMyan­mar bor­der and wari­ness ahead of do­mes­tic events led to the downfall in the mar­kets. Con­sid­er­ing the long term time frame, it was both sell-off and profit-book­ing that led to the much-awaited cor­rec­tion af­ter a straight surge since Jan­uary

2017. Go­ing for­ward, the re­lease of macroe­co­nomic num­bers fol­lowed by the RBI an­nounce­ment of bi-monthly pol­icy re­view and the start of corporate earn­ings sea­son that would drive mar­ket move­ment.

Broader mar­kets un­der­per­formed the bench­mark in­dices where the Mid-cap and Small-cap in­dices plunged 4.6 per cent and 5 per cent, re­spec­tively. Sec­tor-wise, Realty in­dex plunged the most los­ing 6.8 per cent. All other ma­jor sec­toral in­dices ended in the red. Con­sid­er­ing cur­rent trad­ing day’s data, Realty and Fi­nan­cial Ser­vices re­cov­ered gain­ing more than 1 per cent each. IT and Me­dia re­mained marginally lower with 0.2 per cent loss. The mar­ket bias was pos­i­tive, with 902 ad­vances and 535 de­clines on the NSE.

Nifty, af­ter reg­is­ter­ing an all-time high of 10,179, wit­nessed sharp de­cline and logged seven con­sec­u­tive ses­sions of losses. How­ever, the bench­mark took sup­port around the level of 9,687 on the eve of Septem­ber se­ries Fu­tures and Op­tions ex­piry, thereby snap­ping its los­ing streak. The level of 9,680-9,700 is a cru­cial sup­port level for Nifty as pre­vi­ously the in­dex has wit­nessed smart up­side bounce from this sup­port zone. On the up­side, im­me­di­ate re­sis­tance for the Nifty is pegged in the zone of 9,800-9,830, and if Nifty man­ages to close above these lev­els, one can ex­pect it to test lev­els of 9,880-9,940 in the short term. How­ever, de­ci­sive breach of sup­port level of 9,680 may open gates for fur­ther cor­rec­tion up to the level of 9,600.

NIFTY 50

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.