Two mins Nifty 50 wrap of the day

7th November: 2 mins Nifty50 wrap up of the day

NIFTY GAPS-UP on easing of RISK-OFF. Fails to sustain above the 8500 mark – as broader markets show a dead cat bounce .…

• The NIFTY opened around the 8535.75, GAP-UP by around 100 points over last Friday. The weekend news flow on US presidential elections soothed the nerves as RISK-OFF switched in. However the very fact that NIFTY HIGH was created within the opening minutes of trade indicate the FLUIDITY in the markets. The markets largely traded in a tight 40 point range till last half an hour, when NIFTY saw profit booking setting in & dragging it down below the 8500 mark. To shut shop, NIFTY closed @ 8497.05 DOWN by 63.30 points or 0.75%.
• The NIFTY has now clawed back a bit, above the immediate SUPPORT level of 8500-8480, on a closing basis. However the fact that it has failed to sustain above the 8500 mark, as also closed near the day low; makes it vulnerable to the FLUIDITY of the market (Refer to the LIGHTNESS in positions in the market). This now brings us to rates between July 8th to July 12th ; when the market was in an optimistic tranche on the advent of MONSOON. So lies the hitch where the supports stand scattered @ 8380 – 8320 in that order. This may even open up the gates till the level of 8088 (200 DMA). The medium term picture may DIP from current SIDEWAYS to BEARISH with a DROP below the 8420 mark (although violated on intraday basis, but held on closing basis). The BULLS can be considered coming back in force only above the 8650 mark; though the path may be difficult around the 8550-8620 mark (the earlier supports).

 

Nifty50 wrap of the day

NIFTY creates fresh 4 month closing LOWS – as broader markets give way a big way. 8450 on NIFTY stands violated .…

  • The NIFTY opened around the 8500 mark @ 8503.60, marginally UP by around 20 points over Thursday. It was expected that the NIFTY would show some respite from near the crucial SUPPORT zone of 8480-8500; however the very fact that the day HIGH was created within the opening minutes shows the WEAKNESS in the system. Drifting down from beginning, to almost the 8400 mark, the NIFTY showed a dead cat bounce towards the end, given the weekend clearances, the NIFTY shut shop @ 8433.75 DOWN 51.20 points or 0.6%.
  • The NIFTY has now cracked below the immediate SUPPORT level of 8500-8480, on a closing basis. This now brings us to rates between July 8th to July 12th ; when the market was in an optimistic tranche on the advent of MONSOON. So lies the hitch where the supports stand scattered @ 8380 – 8320 in that order. This may even open up the gates till the level of 8088 (200 DMA). The medium term picture may DIP from current SIDEWAYS to BEARISH with a DROP below the 8420 mark (although violated on intraday basis, but held on closing basis). The BULLS can be considered coming back in force only above the 8680 mark; though the path may be difficult around the 8550-8500 mark (the earlier supports).

Weekly wrap: Trading strategies

Weekly wrap

Nifty view for the week

Short term uptrend is now threatened as 5240 is breached on the chart. However 5190 is a silver lining for the bulls

Nifty needs to cross 5320 to resume its uptrend, in the absence of which it can come down

to 5165 once it trades below 5190.

Sector Trend Reader

After 5 weeks sustainable uptrend, BSE Sensex took a halt in last week and after forming high of 17,630 reacted up to 17,181 level. The downward price gap on daily chart in the range between 17,342 & 17,467 may provide strong resistance to Sensex if any intraday bounce back is observed. On the downside, 17,100 – 17,000 will act as strong support where 200 – DMA is also located.

Last week all the sector indices closed negative with BSE IT as major loser. Nosector specific outlook in the current week.

Debt Market weekly

10 Year Yield likely to move in the range of 8.05% to 8.15% levels.

Commodity Pick of the week:Copper

Strategy: Buy above 427.20 with stop loss below 423.50 Target 432, 434.

Copper_Commodities_POW_160712.pdf
Weekly_Technical_View_160712.pdf
Debt_Market_Report_140712.pdf
Sector_Trend_Reader_160712.pdf