Buying momentum to help Nifty test 11K
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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