Please Share::
�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��
��
-->��
Taking positive global cues, the domestic equity market
started last week on a positive note but later turned bearish as the
Reserve Bank of India (RBI) kept the policy rate unchanged in its
monetary policy review.
The RBI kept the repo rate
unchanged at 6.5 per cent. However, positive global cues on improvement
in crude oil prices helped the domestic bellwether indices bounce back.
The global WTI crude oil surged 6.5 per cent to close at $44.4 a barrel
last week. The recovery in the indices was also triggered by
short-covering ahead of a long weekend and good corporate earnings
reported by blue-chip companies.
Sentiment also
turned upbeat as the India Meteorological Department (IMD) reported that
the cumulative rainfall during this monsoon has been 3 per cent above
the long period average (LPA). The foreign portfolio investors (FPIs)
remained net buyers in the equity markets in the previous week as well.
Nifty 50 (8,672.1)
It
was another volatile week for the Nifty 50. Though the short-term trend
is up for the index it tests a key resistance at 8,700 leveland faces
difficulty is surpassing this.
This week: Following
a positive start, the index plunged to record an intra-week low last
week at 8,540 and then rebounded smartly, climbing almost 1 per cent on
Friday. However, the index closed the week on a negative note, down 11
points or 0.13 per cent, and has formed a hanging man candlestick
pattern in the weekly chart which has bearish implications.
The
indicators in the daily chart are on the brink of re-entering the
bullish zone, but the weekly indicators continue to show weakness which
is a cause for concern. Since moving above the key level of 8,500 in
early July, the index has been on a sideways movement in the range
between 8,500 and 8,700. As long as the index manages to hover above the
key support at 8,500, the near-term view could be optimistic. Then,
there is a possibility of breaching the key resistance at 8,700 and
trending northwards to 8,800 in the coming week.
Hence,
traders with a short-term perspective should tread with caution and go
long above 8,700 with a stop-loss at 8,650. Having said that, failure to
move beyond 8,700 and a decisive fall below the immediate support at
8,570 can prove to be a threat for the current positive view. Next key
support at 8,500 can then come to play. But, a decisive plunge below
8,500 will lead to selling pressure and profit-taking which can drag the
index down to 8,400 or 8,300 in the short term. In that case, traders
should desist from taking fresh long positions.
Medium-term trend: The
index has not made any drastic movement over the past two weeks.
Another hanging man candlestick pattern coupled with the weakening
indicators in the weekly chart is cause for concern.
A
bearish start can pull the index below 8,600 and can test 8,500 levels.
But, a slump below 8,300 will be a threat to the medium-term uptrend
and drag the index down to 8,100 and 8,000 levels. Subsequent support is
in the 7,700-7,800 band.
Conversely, strong rally
beyond 8,700 can push the index upwards to 8,800 levels. Next key
resistances are placed at 8,900 and 9,000. Investors with a medium-term
horizon can stay invested with a stop-loss at 8,000.
Sensex (28,152.4)
Last week, the Sensex added 74 points higher and continues to test the crucial resistance at 28,000.
This week:
Friday’s 1 per cent rally on the index has erased its initial loss. The
index ended last week with marginally gains, forming a spinning top
candlestick pattern which implies indecisiveness. The band between
28,000 and 28,500 is a significant resistance band from a medium-term
view. An emphatic break through this resistance band can take the index
northwards to 29,000 and 29,500 in the ensuing months. Nevertheless, a
weak start in the truncated week can drag the index lower to the level
of 27,500 and 27,000 in the near future. A downward break of 27,000
levels can ruin the short-term uptrend. Next support in the range of
26,400-26,500 can then come to play.
Bank Nifty (18,963.7)
The
index advanced 37 points or 0.2 per cent in the previous week. However,
the Bank Nifty persists in testing the key resistance at 19,000-mark.
Over the past one month the index has been consolidating sideways in the
band between 18,500 and 19,000. A conclusive breakout of this range
will decide the next short-term trend for the index. Strong tumble below
18,500 can drag the index lower to 18,300 and 18,000 levels. Next
important supports are at 17,830 and 17,600. But, a decisive upward
breakthrough of 19,000 can strengthen the uptrend and accelerate the
index to 19,500 and 20,000. Traders with a short-term perspective should
tread with caution as long as the index trades in the aforementioned
sideways band.
Global cues
In the prior week,
the Dow Jones Industrial Average inched 0.2 per cent to close at
18,576.4. Both the short and medium-term trends are up for the index. It
is volatile and continues to test a key resistance at 18,550. A
decisive breach of this resistance can push the index higher to 18,622
and 18,700. Significant supports are placed at 18,300 and 18,000.
No comments:
Post a Comment