In­sti­tu­tional money fu­els rally Nifty sights 11K

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

The mar­kets ral­lied smartly last week on the back of in­sti­tu­tional buy­ing sup­port, which also led to short-cov­er­ing dur­ing the F&O ex­piry week. The fall in crude oil prices and the strength­en­ing ru­pee against the green buck helped im­prove the mar­ket sen­ti­ment. The breadth of the mar­ket re­mained neg­a­tive amidst high vol­umes, which in­di­cates con­cen­trated buy­ing in key piv­otal and in­dex stocks.

The FIIs turned net buy­ers in the cash as well as de­riv­a­tives seg­ment. More­over, the DIIs were seen buy­ing reg­u­larly and re­mained net buy­ers dur­ing the week. Global mar­kets re­mained volatile as the US Fed­eral an­nounced that in­ter­est rates were al­most at the top of the rate curve. Oil prices firmed up on Fri­day on ex­pec­ta­tions that OPEC and Rus­sia will agree to some form of pro­duc­tion cuts next week al­though swelling US sup­plies kept the mar­kets in check. On the do­mes­tic front, the fi­nal leg of state elec­tions in Ra­jasthan and Te­lan­gana will be held on 7 De­cem­ber

2018. Tech­ni­cally, the pre­vail­ing pos­i­tive tech­ni­cal con­di­tions helped the mar­kets wit­ness hand­some gains last week. The Stochas­tic, KST and RSI are all placed above their re­spec­tive av­er­ages on the daily and wee kly charts. Fur­ther, the MACD is placed above its av­er­age on the daily chart. More­over, the Nifty is placed above its 50-day SMA and 200-day SMA. These pos­i­tive tech­ni­cal con­di­tions could lead to reg­u­lar buy­ing sup­port.

The pre­vail­ing neg­a­tive tech­ni­cal con­di­tions, how­ever, still hold good. The MACD is placed below its av­er­age on the weekly chart. Fur­ther, the Stochas­tic is placed in the over­bought ter­ri­tory on the daily and weekly charts. The Nifty is still placed below its 100-day SMA.

The Nifty’s 50-day SMA is also placed below its 100day SMA and 200-day SMA, sig­nal­ing a ‘Death Cross’ break­down. All these neg­a­tive tech­ni­cal con­di­tions

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.

could lead to profit-book­ing and sell­ing pres­sure, es­pe­cially at the higher lev­els.

The +DI line has moved above the -DI line and is placed above 29, which in­di­cates that the buy­ers are gain­ing strength. The ADX line is still placed around 15, which in­di­cates lack of strength in trend. The Nifty has closed above 10843, which au­gurs well for the mar­kets. The Nifty needs to sus­tain above this level in or­der to test the 11000 level. 10589 re­mains a cru­cial sup­port level. The mar­ket sen­ti­ment has turned pos­i­tive but the rally is not broad-based. In­dex heavy­weights have con­trib­uted more than the mid-caps and small-caps. Reg­u­lar fol­low-up buy­ing sup­port is needed to help the Nifty test the 11000 level. Nev­er­the­less, the mar­kets will turn volatile ahead of the RBI pol­icy and state elec­tion re­sults. Mean­while, the mar­kets will take cues from the forth­com­ing

RBI pol­icy, news flow on state elec­tions, Dol­lar-Ru­pee ex­change rate, global mar­kets and crude oil prices. Tech­ni­cally, the Sen­sex faces re­sis­tance at the 36350, 36602, 37165, 37490 and 38125 lev­els and seeks sup­port at the 35606, 35400, 35187, 34748, 34344, 33723 and 33349 lev­els.

The re­sis­tance lev­els for the Nifty are placed at 11008, 11081, 11146 and 11515 while its sup­port lev­els are placed at 10843, 10756, 10710, 10625 and 10589.

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