Technical ResearchMARKET SYNOPSIS
* On Friday, NSE-NIFTY opened higher and scaled new high with positive momentum in interest rate sensitive sectors and managed to close at all time high levels. Bank Nifty has supported the up move from after it gave a breakout above 24,300 levels.
* Finally, NIFTY closed the session at 10,167 mark, with the rise of 71 points.
* NSE Cash segment reported turnover of Rs29,800 crore as compared to Rs 27,360 crore earlier.
* Overall market breadth remained equal, where 779 stocks advanced against 927 declined stocks.
* Mixed trend was observed across all the sectoral indices during the day where Banks, Metal and IT indices emerged as top gainers with the increase of 1.3%, 1.1% and 0.5%. Pharma, Media and FMCG declined by 0.5% average for the day.
NSE-NIFTY OUTLOOK
* NSE-NIFTY rose all time high, where up-beat global cues and positive momentum in banks leading the momentum to scale and closed at all time high levels. As mentioned earlier, our view will remain positive on NIFTY, where steady rise in the RSI, positive market breadth and up-beat global sentiment are coinciding with our view and we believe market will see some consolidation at current levels after a sharp up move. On the downside the trend will turn negative below 9,950 levels while on the higher side, now NIFTY will face major hurdle around 10,330-10,370 mark.
* As for the day, support is placed at around 10,050 and then at 9,990 levels, while resistance is observed at 10,230 and then at 10,280 levels.
Intraday Picks
ASIANPAINT (LTP: 1174) BUY For today’s trade, long position can be initiated at Rs 1165 for target of Rs 1189 with a strict stop loss of Rs 1154. Traders are advised to avoid early morning whipsaw.
INDIACEM (LTP: 180) BUY For today’s trade, long position can be initiated at Rs 178 for target of Rs 186 with a strict stop loss of Rs 176. Traders are advised to avoid early morning whipsaw.
Derivatives Snapshot
* Nifty opened higher on back of global cues and continued to trade positive scaling new high as banks lead the momentum after the breakout of 24,400 levels. Nifty closed up by 71 points at 10,168 levels. Among the nifty stocks 32 stocks advanced and 18 declined during the day.
* Sectorally, it was a mixed bag with Pharma and FMCG remained flat by 0.2% while Banks, Metals and IT gained by 1.3%, 1.1% and 0.5% for the day. Media declined by 0.5%.
* Broader market indices remained positive with NIFTY 100,200 and 500 to close up by 0.6% average while midcap indices and small cap indices gained by 0.2% and 0.6% respectively.
* Nifty October futures ends with 25 points premium at 10,192 mark, while on other hand, Bank Nifty October futures ended with the premium of 43 points at 24,732 mark.
* Nifty has scaled a new high as the leadership sector banks has seen a breakout, We believe markets will consolidate at current levels after a sharp up move in the past few days. Nifty 10,000 PE has the highest OI of 70 lakhs shares while on the upside there is no significant open interest in calls as markets closed at all time high.
Sectoral Activity: Amongst sectoral index, Banks and Telecom remained in focus with positive momentum.
Stock Activity: KTK Bank and Idea observed build up in long position.
To Read Complete Report & Disclaimer
For More Reliance Securities Ltd disclaimer at http://www.rsec.co.in/disclaimer SEBI registration No. INH000002384
Views express by all participants are for information & acadamic purpose only. Kindly read disclaimer before refering below views. For Disclaimer
IGI
