Follow-up buying support needed for Nifty 10000
The markets corrected last week on the back of overbought conditions and negative news. The U-turn by GST Council on the rates to be levied on cigarettes caused an immediate reaction on heavyweights like ITC, triggering a broad-based correction. The overall trend turned rangebound with the Nifty taking support around the 9825 level and finding resistance around the 9915 level. However, the markets were rescued by Reliance Industries and Wipro on Friday, 21 July 2017, as both rose on the back of good results and announcements of bonus and buyback respectively.
The FIIs remained net buyers in the cash and derivatives segment. The DIIs, however, were seen booking profits and remained net sellers during the week. The breadth of the market remained negative amidst low volumes. On the global front, the US markets remained rangebound. On the domestic front, the earnings season had a mixed week. The Parliament session started with the new President being appointed, the BJP winning the presidential elections easily. Technically, the prevailing positive technical conditions still hold good. The MACD, Stochastic,
KST and RSI are all placed above their respective averages on the daily chart. Further, the Stochastic and RSI are both placed above their respective averages on the weekly chart. Moreover, 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 KST are placed below their respective averages on the weekly chart. Further, the RSI and Stochastic are placed in the overbought territory on the weekly
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.
chart. These negative technical conditions could lead especially at higher levels.
The ADX line is placed above the +DI line and the -DI line and is also placed above the 38 level on the weekly chart, which indicates that the current trend is strong. Moreover, the +DI line is placed above the –DI line and above 35 on the weekly chart, which indicates that the buyers have an upper hand.
The Nifty is struggling around the 9915 resistance level. It is important for the Nifty to sustain above it to move higher and test the magical 10000 mark. 9750 is an important support level. If the Nifty slips below this level, then it is likely to test the 9638 level. The market sentiment remains tentatively positive but follow-up buying support is necessary at higher levels. Intermediate bouts of profit-booking and selling pressure will be witnessed due to the prevailing overbought conditions.
In the meanwhile, the markets will take cues from the earnings season, Parliament session, global markets, Dollar-Rupee exchange rate and crude oil prices. Technically on the upside, the Sensex faces resistance at the 32110, 32750 and 33000 levels and seeks support at the 31892, 31725, 31523, 31000, 30247,
29800 and 29259 levels on the downside.The resistance levels for the Nifty are placed at 9915,
10000 and 10050 while its support levels are placed at 9825, 9750, 9638, 9524-9500 and 9350. to intermediate bouts of profit-booking and selling pressure,