Reg­u­lar fol­low-up buy­ing sup­port needed

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

The mar­kets fi­nally cor­rected last week due to the pre­vail­ing over­bought con­di­tions, rise in crude oil prices and de­pre­ci­at­ing ru­pee. In­ter­me­di­ate bouts of profit-booking and sell­ing pres­sure were seen as buy­ers un­wound their long po­si­tions. The FIIs re­mained net sell­ers in the cash seg­ment but were seen hedg­ing their po­si­tions by re­main­ing buy­ers in the de­riv­a­tives seg­ment. The DIIs re­mained net buy­ers but they were seen booking prof­its at the higher lev­els. On the global front, crude oil prices rose with Brent mov­ing above the $78 mark as con­cerns of ban on Iran oil ex­ports loomed on the mar­ket sen­ti­ment. On the do­mes­tic front, the ru­pee con­tin­ued to de­pre­ci­ate and traded around 72 against the US dol­lar. Tech­ni­cally, the pre­vail­ing neg­a­tive tech­ni­cal con­di­tions still hold good. The MACD, KST and RSI are all placed be­low their re­spec­tive av­er­ages on the daily chart. Fur­ther, the Stochas­tic is placed be­low its av­er­age on the weekly chart. More­over, the RSI and Stochas­tic are placed in the over­bought ter­ri­tory on the weekly chart while the RSI is placed around the over­bought ter­ri­tory on the weekly chart. These neg­a­tive tech­ni­cal con­di­tions could lead to in­ter­me­di­ate bouts of profit-booking and sell­ing pres­sure es­pe­cially at the higher lev­els.

The pre­vail­ing pos­i­tive tech­ni­cal con­di­tions, how­ever, still hold good. The MACD, KST and RSI are all placed above their re­spec­tive av­er­ages on the weekly chart. Fur­ther, the Stochas­tic is placed above its av­er­age on the daily chart as well. More­over, the Nifty is placed above its 50-day SMA, 100-day SMA and 200-day SMA, which is its long-term av­er­age. The Nifty’s 50-day SMA is placed above its 100-day

SMA and 200-day SMA and 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 +DI line is still placed above the -DI line and above 25.

But it came off its re­cent high last week, which in­di­cates that buy­ers have booked prof­its. How­ever, the ADX line is placed above 32, which in­di­cates that buy­ers have an up­per hand.

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.