For the momentum to continue, the Nifty has to hold above 10750-10777 zones to extend its move towards crucial hurdle at 10985 and above that, only a fresh leg of the rally could start towards 11K.
Well, it was a roller coaster week for investors. A strong December expiry and rollover to January series suggest that the momentum should continue on the higher side.
On a weekly basis, Nifty rose nearly 1% but formed a Hammer-like pattern on a weekly scale which suggests we could be bearing the top, and now require follow up buying.
But, if we look at the rollover data which stood at 74.27% for January series suggest that the momentum should continue. It was also higher than the 3-month average of 69.85%.
Technically speaking, the Nifty index witnessed a strong recovery from lower levels in the last truncated week and reclaimed its 10800 levels.
It has been flirting to its 50-DEMA from last 38 trading sessions and got stuck in a broader trading range with crucial hurdle at 10950-10985 zones.
For the momentum to continue, the Nifty has to hold above 10750-10777 zones to extend its move towards crucial hurdle at 10985 and above that, only a fresh leg of the rally could start towards 11K.
While on the downside support exists at 10777 then 10650 zones.
The rupee jumped 40 paise on December 28 to finish at an over one-week high of 69.95 against the US currency on strong dollar buying by banks and exporters amid the greenback's weakness overseas.
On the institutional front, FPIs were net sellers to the tune of Rs 119 crore while DIIs were net buyers to the tune of Rs 1199 crore in India Capital markets, according to provisional data.
Big News:
It is the last trading day of the year 2018 and it has been a good year for long-term investors. Why I say that - because benchmark indices hit record highs and then corrected sharply
We saw multiple entry points which long-term investors could have used to add positions or deploy fresh cash at lower levels
Let’s look at benchmark indices: Nifty rose 3.1% while Sensex rallied nearly 6% so far in the year 2018
Top 5 Nifty gainers: Bajaj Finance (up 47%), TCS (up 41%), Tech Mahindra (up 40%), HUL (up 32%), and Infosys (up 26%)
Top 5 Nifty losers: Tata Motors (down 61%), Yes Bank (down 43%), Vedanta (down 40%), and Bharti Airtel (down 40%).
Technical View:
Nifty formed a Hammer-like pattern on the weekly charts
Three levels: 10820, 10893, 10985
Max Call OI: 11200, 11000
Max Put OI: 10500, 10,000
Stocks in news:
Mahindra & Mahindra Financial Services said that it has received approval from Registrar of Companies to raise up to Rs 10,000 crore through non-convertible debentures.
Private sector lender ICICI Bank said it has raised Rs 1,140 crore by issuing Basel III-compliant bonds on private placement basis.
State-owned Central Bank of India on December 28 said it will raise about Rs 200 crore by issuing shares to staff under the employee stock purchase scheme.
Technical Recommendations:
We spoke to 5nance.com and here’s what they have to recommend:
Welspun Corp Ltd: Sell | LTP: Rs 139| Target: Rs 133 | Stop-loss: Rs. 148 | Downside: 4%
DLF Ltd: Sell | LTP: Rs 177| Target: Rs. 170 | Stop-loss: Rs. 186 | Downside: 4%
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
