WHAT LIES AHEAD : NEAR-TERM PIC­TURE

Flash News Investment - - TECHNICALS -

In­dian mar­kets wit­nessed a strong re­cov­ery from the cru­cial sup­port lev­els driven by ro­bust macroe­co­nomic num­bers, off­set­ting the geopo­lit­i­cal ten­sions and weak do­mes­tic eco­nomic fore­casts. Af­ter a day’s breather for profit-book­ing, mar­kets yet again bounced back ahead of front­line cor­po­rate earn­ings re­ports, viz; TCS and In­dusInd Bank. On Oc­to­ber 12, bulls gave a strong come­back with both Nifty and Sen­sex gain­ing over one per cent. Go­ing for­ward, mar­kets are likely to wit­ness volatil­ity amid cor­po­rate earn­ings and an­nounce­ments.

Apart from bench­mark in­dices, broader mar­kets too ended on a pos­i­tive note. Small-cap out­per­formed bench­marks with 2.7 per cent gains, while Mid-cap closed in line with 1.7 per cent gains. IT and metal sec­tors re­mained the lead gain­ers dur­ing the pe­riod with 3 per cent plus gains each. All other sec­tors ended in the green. On Oc­to­ber 12, mar­ket bias too re­mained strong with 1138 ad­vances and 562 de­clines on the NSE while In­dia VIX tum­bled 5.8 per cent.

Af­ter reg­is­ter­ing low of 9,688, Nifty formed se­quence of seven higher lows. How­ever, on Wed­nes­day, for the first time Nifty breached its se­quence of higher low as day’s ac­tion formed a size­able bear can­dle. But on Thurs­day, fol­low-up sell­ing was miss­ing and bulls bounced back strongly, re­sult­ing in for­ma­tion of a size­able bull can­dle. More­over, Nifty man­aged to close above its stiff re­sis­tance of 10,070-10,075 which is 78.6% re­trace­ment level of its re­cent down leg, which started from the high of 10,179 to the low of 9688. Go­ing for­ward, in­dex may con­tinue its up­ward mo­men­tum and could re­visit its all-time high level of 10,179. On the flip side, im­me­di­ate sup­port is placed around the 10,070 level, fol­lowed by 10,040 and 9,990. The daily 14-pe­riod RSI is in ris­ing tra­jec­tory and trad­ing in bullish zone.

NIFTY 50

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