Buy­ing mo­men­tum to help Nifty test 11K

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

Mir­ror­ing the weak global mar­ket cues, the do­mes­tic mar­kets started the week on a weaker note. Sus­tained bouts of sell­ing pres­sure were seen as buy­ing sup­port re­mained dis­mal. How­ever, the mar­kets man­aged to bounce back dur­ing the week on the back of pos­i­tive gov­ern­ment pol­icy an­nounce­ments and global mar­ket cues. The breadth of the mar­ket re­mained neu­tral amidst high vol­umes. The FIIs re­mained net buy­ers in the cash and de­riv­a­tives seg­ment. The DIIs, how­ever, re­mained net sell­ers and were seen book­ing prof­its at the higher lev­els. On the do­mes­tic front, the gov­ern­ment re­duced GST rates on many items and gave a nod to re­cap­i­talise a few PSU banks. Crude oil prices re­mained soft on the back of pos­i­tive US data. Crude stock­piles and on­go­ing con­cerns about the global econ­omy kept the mar­kets un­der pres­sure. Tech­ni­cally, the pre­vail­ing pos­i­tive tech­ni­cal con­di­tions helped the mar­kets move higher. The Stochas­tic, KST and RSI are all placed above their re­spec­tive av­er­ages on the daily and weekly charts. Fur­ther, the MACD is placed above its av­er­age 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 MACD is placed be­low its av­er­age on the daily chart. The Nifty is placed be­low its 100-day SMA. More­over, 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 prof­it­book­ing and sell­ing pres­sure, es­pe­cially at the higher lev­els.

Money Times wishes all its read­ers a very Happy and Prof­itable 2019.

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