Dear Trader…
On the fourth day of the week, the
Indian stock market started trading with a bullish trend. Supportive global
signals led to a positive start which was furer boosted by buying in the main
area of the index.
The market continued its upward
trend with Supportive global cues led to a positive start which was further
fuelled by the buying in index majors.
Nifty
futures opened at 14939.80 points against the previous close of 14888.00,
opening at a low of 14873.25 points. Nifty Future closed with an average
movement of 171.45 points and a strong rise of around 50.00 points and around
14938.00 points..!!!
On the NSE, the Midcap 100 Index
rose 0.53% and the Small Cap 100 Index rose 1.24%. Speaking of various sectoral
indices, the NSE sell off in banks, Finance, pharma, PSU bank and private bank
toms while all other sectoral indices high closed. A total of 215 stocks traded
on the NSE.
Friends, the absence
of any significant growth locally, Indian markets are likely to determine
trends based on global growth and US market signals. The index formed a small
bullish candle on the daily charts as closing was higher than opening levels.
Overall, the market has been range bound since the recent major correction and
may remain so in coming days too.
The recent buoyancy on
the global front combined with the supportive local cues is helping the index
to regain momentum. However, volatility is still high on the stock-specific
front. Keeping all in mind, we feel it’s prudent to continue with hedged
positions and prefer index majors over the others.
On the positive side, there are steadily improving news
relating to the economy and corporate revenue & profits.
Traders may remain
cautious as volatility is expected to spike up due to global markets selloff
which could result into a likely pause in the ongoing momentum & result
into a consolidation.
we thus suggest limiting
naked leveraged positions and using further decline to add quality stocks.
Technically, the important key resistances are placed at 15008 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 15088 – 15105 levels. Immediate support is placed at 14888 – 14808 levels.
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