Mar­kets to be range­bound and volatile

Money Times - - Front Page - By San­jay R. Bha­tia

The mar­kets moved higher and recorded fresh clos­ing highs on the back of sus­tained buy­ing sup­port last week. The smooth im­ple­men­ta­tion of GST helped im­prove the mar­ket sen­ti­ment. The breadth of the mar­ket re­mained pos­i­tive amidst high vol­umes, which is a pos­i­tive sign for the mar­kets.

The FIIs re­mained net sell­ers in the cash seg­ment but were seen hedg­ing their po­si­tions by re­main­ing net buy­ers in the de­riv­a­tives seg­ment. More­over, the DIIs con­tin­ued to re­main net buy­ers dur­ing the week. Crude oil prices re­mained volatile, trad­ing be­tween $44-49. The geopo­lit­i­cal ten­sions on the Korean penin­sula and the In­dia-China stand­off con­tinue to re­main a sore point for the global mar­kets. The earn­ings sea­son is about to start and will weigh on the mar­ket sen­ti­ment. The mon­soon ses­sion of Par­lia­ment will be­gin from 12 July 2017 and there is like­li­hood of bank­ing re­form an­nounce­ments. Tech­ni­cally, the pre­vail­ing pos­i­tive tech­ni­cal con­di­tions still hold good. The KST and RSI are both placed above their re­spec­tive av­er­ages on the daily chart. Fur­ther, the RSI is placed above its av­er­age on the weekly chart. The Nifty is placed above its 50-day SMA, 100-day SMA and 200-day

SMA. The Nifty’s 50-day SMA is placed above its 100-day and 200-day SMA, its 100-day SMA is placed above its 200-day

SMA in­di­cat­ing a ‘golden cross’ break­out. Th­ese pos­i­tive tech­ni­cal con­di­tions could lead to reg­u­lar buy­ing sup­port.

The pre­vail­ing neg­a­tive tech­ni­cal con­di­tions, how­ever, still hold good. The MACD and Stochas­tic are both placed be­low their re­spec­tive av­er­ages on the daily and weekly charts. Fur­ther, the KST is also placed be­low its av­er­age on the daily chart. The Stochas­tic is placed in the over­bought ter­ri­tory on the daily chart while the RSI is placed in the over­bought zone on the weekly chart. Th­ese neg­a­tive tech­ni­cal con­di­tions could lead to in­ter­me­di­ate bouts of profit-book­ing and sell­ing pres­sure es­pe­cially at higher lev­els.

The +DI line is placed above the ADX line and the -DI line and is also placed above the 30 level, which in­di­cates that buy­ers are gain­ing strength. How­ever, the ADX line is still lan­guish­ing around 20, which in­di­cates that the cur­rent trend does not have strength and a see-saw move­ment is

Now fol­low us on In­sta­gram, Face­book & Twit­ter at mon­ey­times_1991 on a daily ba­sis to get a view of the stock mar­ket and the hap­pen­ings which many may not be aware of.

likely.

The Nifty has man­aged to sus­tain above the 9638 mark, which au­gurs well for the mar­kets. If it con­tin­ues to sus­tain above it, then it may test the 9750 mark. If it fails, then it could slide down to test the 9524-9500 lev­els fol­lowed by 9300. The mar­ket sen­ti­ment re­mains cau­tious ahead of the earn­ings sea­son and geo-po­lit­i­cal ten­sions on the bor­der with China and the ten­sions be­tween USA and North Korea. The mon­soon ses­sion of the Par­lia­ment will start soon and hope­fully fur­ther re­forms will be an­nounced along with the elec­tion of the new Pres­i­dent. The over­all trend is likely to re­main range­bound and choppy amidst stock-spe­cific ac­tion. In­dex man­age­ment has con­tin­ued with the Nifty record­ing new clos­ing highs. 9500 and 9350 re­main cru­cial sup­port lev­els for the Nifty. In the mean­while, the mar­kets will take cues from the earn­ings sea­son, Par­lia­ment ses­sion, progress of mon­soon, Dol­lar-Ru­pee ex­change rate, global mar­kets and crude oil prices. Tech­ni­cally, the Sen­sex faces re­sis­tance at the 31523, 31725 and 32000 lev­els and seeks sup­port at the 31000, 30247, 29800 and 29259 lev­els.The re­sis­tance lev­els for the Nifty are placed at 9710, 9750, 9825 and 9900 while its sup­port lev­els are placed at 9638, 9524, 9500, 9350,

9275 and 9220.

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