Published on 23/11/2017 11:51:21 AM | Source: Reliance Securities Ltd
NIFTY and we continue to believe that index will soon revisit the life-time-high of 10,490 level - Reliance Sec
Technical Research
MARKET SYNOPSIS
* On Wednesday, NSENIFTY witnessed sharp decline post firm opening, where its psychological level-10,300 worked as key reversal point for the index. Later, with the help of corresponding bounce back index settled the session on a positive note with rise of 15 points at 10,342 mark.
* NSE Cash segment reported turnover of Rs29,866 crore as compared to Rs33,644 crore earlier.
* Overall market breadth turned negative, where 804 stocks advanced against 943 declined stocks.
* Mixed trend was observed across all the sectoral indices during the day, where PSU Bank and Media emerged as top gainers with the increase of 1.3% and 2.6% respectively. However, on the other hand Metal and Pharma indices reported the highest decline (0.7% each).
NSE-NIFTY OUTLOOK
* NSE-NIFTY closed above the make-or-break level 10,300 for straight second trading session in a row, where index managed to fill the recent positive gap and rose to 11-day closing high. Fall in the fresh market participation, negative market breadth and oversold Stochastic are signaling lack of buying interest in the market at this juncture. However, rise in RSI is indicating strength in the index. Despite mixed signals, our view will remain up-beat on NIFTY and we continue to believe that index will soon revisit the life-time-high of 10,490 level. In case of decline, index will find support at 10,100 and then at 10,000 levels.
* As for the day, support is placed at around 10,300 and then at 10,270 levels, while resistance is observed at 10,385 and then at 10,430 levels.
Intraday Picks
MUTHOOTFIN (PREVIOUS CLOSE: 461) BUY For today’s trade, long position can be initiated at around Rs457-454 for the target of Rs475 with a strict stop loss of Rs450.
RAYMOND (PREVIOUS CLOSE: 977) SELL For today’s trade, short position can be initiated at around Rs980-985 for the target of Rs950 with a strict stop loss of Rs995.
Derivatives Snapshot
* Nifty managed to recover post an initial decline on back of buying in selected frontline majors and finally, ended in green with the increase of 15 points at 10,342 level. Among the Nifty stocks 23 stocks advanced and 27 declined during the day.
* Sectorally, PSU Bank and Media gained by 1.3% and 2.6% respectively, while profit booking was witnessed in Metal and Pharma to decline by 0.7% each.
* Broader market indices remained flat with NIFTY 100,200 and 500 to close up by 0.1% average while Mid-Cap index ended flat, Small-Cap outperformed the benchmark Nifty with the gain of 0.5%.
* Nifty November futures ended with 16 points of premium at 10,358 mark, while on the other hand, Bank Nifty November future ended with the premium of 26 points at 25,793 level.
* We believe that Nifty will cross the all-time-high provided it stays firm above 10,300 level, as Nifty 10,300 PE has seen highest OI (i.e. 54 Lac shares). However on the higher side 10,500 capping the upside, as Nifty 10,500 CE has 61 Lac shares OI.
Sectoral Activity: Amongst sectoral index, PSU Bank and Media remained in focus with positive momentum.
Stock Activity: Canara Bank and ZEEL observed build up in long position. .
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