Fol­low-up buy­ing sup­port needed for Nifty 10000

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

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,

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