Mar­kets may turn range­bound

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

The mar­kets started on a weak note last week on the back of exit poll re­sults. How­ever, the mar­kets bounced back even af­ter the dis­mal poll re­sults for the BJP. The breadth of the mar­ket re­mained firm amidst high vol­umes.

The FIIs re­mained net sell­ers in the cash seg­ment but were seen hedg­ing their po­si­tions by be­ing buy­ers in the de­riv­a­tives seg­ment. The DIIs once again turned buy­ers dur­ing the week. The US mar­kets re­mained range­bound ahead of the Fed­eral Re­serve meet on 19th De­cem­ber.

Crude oil prices, which moved higher on ex­pec­ta­tions of pro­duc­tion cuts to re­duce the in­ven­to­ries, soft­ened on Fri­day due to re­newed con­cerns of slower global eco­nomic growth as China re­ported a drop in re­tail sales and in­dus­trial out­put growth for Novem­ber, high­light­ing the fact that US-China trade war is af­fect­ing its econ­omy. On the do­mes­tic front, the

RBI Board meet with its new Gov­er­nor at the helm is likely to an­nounce some mea­sures to re­duce liq­uid­ity con­cerns and prop up de­mand in the slug­gish econ­omy, which in fact re­ported good IIP num­bers and lower WPI num­bers. Tech­ni­cally, the pre­vail­ing pos­i­tive tech­ni­cal con­di­tions helped the mar­kets move higher. The MACD, Stochas­tic, RSI and KST are all placed above their re­spec­tive av­er­ages on the daily chart. Fur­ther, the KST and RSI are placed above their re­spec­tive av­er­ages on the weekly 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 Stochas­tic and MACD are placed be­low their re­spec­tive av­er­ages on the weekly charts. Fur­ther, the Stochas­tic is placed in the over­bought ter­ri­tory on the daily chart. The Nifty is still placed be­low its 100-day SMA. The Nifty’s 50-day SMA is also placed be­low its 100-day 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.

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.

The +DI line has again moved above the -DI line and is placed above 26, which in­di­cates that the buy­ers are gain­ing strength. The ADX line is still placed be­low 15, which in­di­cates that the mar­kets lack sec­u­lar trend and strength. The Nifty has sus­tained above the 10756 level, which au­gurs well for the mar­kets. It is im­por­tant for the Nifty to sus­tain above 10756 for fur­ther buy­ing to emerge and to move higher to test the 10843 level. 10625-10589 is an im­por­tant sup­port range. The mar­kets could turn range­bound. The news flow from the RBI board meet­ing and forth­com­ing Fed­eral Re­serve meet will in­flu­ence the mar­ket sen­ti­ment. Mean­while, the mar­kets will take cues from the Dol­larRu­pee 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 10843, 10942 and 11008 while its sup­port lev­els are placed at 10756, 10710, 10625, 10589, 10526, 10489 and 10440.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.