Mar­kets are in­de­ci­sive

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

The mar­kets re­mained range­bound last week. Though the Nifty man­aged to move above the 10770 mark, it failed to sus­tain at the higher level due to lack of fol­low-up buy­ing sup­port. The mar­kets wit­nessed in­ter­me­di­ate bouts of profit-book­ing and sell­ing pres­sure due to over­bought con­di­tions. The breadth of the mar­ket re­mained neg­a­tive amidst low vol­umes.

The FIIs turned net sell­ers in the cash and de­riv­a­tives seg­ment. The DIIs, how­ever, were seen buy­ing at the lower lev­els and re­mained net buy­ers dur­ing the week.

The global mar­kets re­mained volatile. Crude oil prices soft­ened fur­ther as US crude in­ven­to­ries rose to the high­est level since De­cem­ber 2017 amid con­cerns of an emerg­ing global glut. How­ever, ex­pected sup­ply cut by

OPEC is likely to pre­vent fur­ther drops. On the do­mes­tic front, the fall in crude oil prices is good for the mar­ket sen­ti­ment and the ru­pee. Tech­ni­cally, the pre­vail­ing neg­a­tive tech­ni­cal con­di­tions weighed on the mar­ket sen­ti­ment. The RSI and KST are both placed be­low their re­spec­tive av­er­ages on the daily and weekly charts. Fur­ther, the Stochas­tic is placed be­low its av­er­age on the daily chart and re­mains in the over­bought zone on the weekly chart. More­over, the Nifty is placed be­low its 50-day SMA, 100-day SMA and 200day SMA. The Nifty’s 50-day SMA is placed be­low its 100day SMA and 200-day SMA sig­nal­ing a ‘Death Cross’ break­down. All these neg­a­tive tech­ni­cal con­di­tions could lead to profit-book­ing and sell­ing pres­sure es­pe­cially at the higher lev­els.

The pre­vail­ing pos­i­tive tech­ni­cal con­di­tions, how­ever, still hold good. The MACD is placed above its av­er­age on the daily chart. Fur­ther, the Stochas­tic is placed above its av­er­age on the weekly chart. These pos­i­tive tech­ni­cal con­di­tions could lead to buy­ing sup­port at the lower lev­els.

The -DI line has moved above the +DI line but both are

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.

con­verg­ing. The ADX line is placed be­low 17, which in­di­cates in­de­ci­sive­ness and lack of a trend. The Nifty has closed be­low the 10589 level, which does not au­gur well for the mar­kets. It is im­por­tant for the Nifty to move and close above 10589 in or­der to rise fur­ther.

10400 is now an im­por­tant sup­port level. The mar­ket sen­ti­ment re­mains ten­ta­tive and in­de­ci­sive ahead of state elec­tion re­sults next month. The mar­kets are likely to turn volatile ahead of the F&O seg­ment ex­piry on Thurs­day. Mean­while, the mar­kets will take cues from the news flow on state elec­tions, Dol­lar-Ru­pee ex­change rate, global mar­kets and crude oil prices. Tech­ni­cally, the Sen­sex faces re­sis­tance at the 35187, 35400, 35606, 36350, 36602 and 37165 lev­els and seeks sup­port at the 34748, 34344, 33723 and 33349 lev­els. The re­sis­tance lev­els for the Nifty are placed at 10589, 10625, 10710, 10756 and 10843 while its sup­port lev­els are placed at 10419, 10340, 10283, 10200 and 10000.

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