Market week ahead: Nifty to consolidate bit more; pharma, FMCG stocks to do better
, ET CONTRIBUTORS|
Updated: Nov 12, 2017, 12.08 PM IST
Very much on the analysed lines as per our previous weekly note, the meaningful upmove in the benchmark Nifty50 continued to elude us, while the index marked marginal highs.
In the week that has gone by, the Nifty has settled with net weekly loss of 130.75 points or 1.25 per cent. The high of the week at 10,490.45 resisted precisely to the 22-month long upper trend line of the rising channel that the Nifty have formed.
In the coming week, we will see the market positively consolidating. In the worst case scenario, the levels of 10,200 are expected to act as sacrosanct support. In all likelihood, we will see the markets positively consolidating, and attempting some up moves. However, the levels of 10,490 will act as immediate serious resistance levels over coming days.
The important levels on the upside to watch for would be 10,450 and 10,525. The supports should come around 10,200-10,150 zones.
The Relative Strength Index – RSI on the weekly chart is 65.4097. It remains neutral showing no divergences against the price. The weekly MACD is bullish while it trades above its signal line. No significant formations on weekly candles were observed.
It is evident on the charts that the market has resisted the 22-month long upper trend line of the rising channel. The levels have acted as a pattern resistance, but given the rising nature of the trend line, the Nifty will have the ability to continue to give marginal highs.
With the levels of 10,200-10,150 zones acting as strong support in event of downsides, we will see the market consolidating with a strong positive bias in the coming week.
A study of Relative Rotation Graphs – RRG show that the metal pack is steadily losing momentum on the charts. We may see individual gains, but overall no meaningful up move can be expected in metals.
FMCG is seen consolidating its performance and is expected to relatively perform better. Strong momentum is seen in pharma and midcap universe. Realty and smallcap universe may also attempt to relatively outperform the markets. Energy and service sector too is seen losing momentum and no significant performance can be expected from these sectors. Some outperformance can also be expected from auto and infra stocks.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)
In the week that has gone by, the Nifty has settled with net weekly loss of 130.75 points or 1.25 per cent. The high of the week at 10,490.45 resisted precisely to the 22-month long upper trend line of the rising channel that the Nifty have formed.
In the coming week, we will see the market positively consolidating. In the worst case scenario, the levels of 10,200 are expected to act as sacrosanct support. In all likelihood, we will see the markets positively consolidating, and attempting some up moves. However, the levels of 10,490 will act as immediate serious resistance levels over coming days.
The important levels on the upside to watch for would be 10,450 and 10,525. The supports should come around 10,200-10,150 zones.
The Relative Strength Index – RSI on the weekly chart is 65.4097. It remains neutral showing no divergences against the price. The weekly MACD is bullish while it trades above its signal line. No significant formations on weekly candles were observed.
It is evident on the charts that the market has resisted the 22-month long upper trend line of the rising channel. The levels have acted as a pattern resistance, but given the rising nature of the trend line, the Nifty will have the ability to continue to give marginal highs.
With the levels of 10,200-10,150 zones acting as strong support in event of downsides, we will see the market consolidating with a strong positive bias in the coming week.
A study of Relative Rotation Graphs – RRG show that the metal pack is steadily losing momentum on the charts. We may see individual gains, but overall no meaningful up move can be expected in metals.
FMCG is seen consolidating its performance and is expected to relatively perform better. Strong momentum is seen in pharma and midcap universe. Realty and smallcap universe may also attempt to relatively outperform the markets. Energy and service sector too is seen losing momentum and no significant performance can be expected from these sectors. Some outperformance can also be expected from auto and infra stocks.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)
