Dear Trader…
The Indian market had a splendid start to the week, with the benchmark index Nifty50 clocking new highs. The bullish momentum carried throughout the week, with Nifty being on a roll of achieving new heights daily. However, the stellar run of the eight consecutive days came to a halt ahead of the weekend as Nifty snapped its winning streak and took a breather. All in all, it has been an unprecedented move wherein the broader market also participated in levitating the sentiments. With the weekly closure, Nifty surged nearly a percent and settled a tad below the 18700 level.
Technically speaking, the chart structure construes a positive development, with the indices being in a cycle of higher highs – higher lows. Even the global relief of the Fed to temper its aggressive interest rate hike has provided a significant thrust to the equities across the globe, mirroring which our market continued to soar northwards. Alongside the broader participation from the small and midcap counters can be seen as a sign of progression in such market conditions. As far as levels are concerned, 18500 is expected to act as the sacrosanct support for the index. While on the higher end, the swing high of a18900 odd zone is expected to provide some intermediate resistance, followed by the psychological mark of 19000 in the near term.
Nifty futures opened at 18948.95 points against the previous close of 18948.30 and opened at a low of 18760.05 points. Nifty Future closed with an average movement of 188.90 points and a decline of around 133.30 points and 18815.00 points…!!
On the NSE, the midcap 100 index will rise 0.88% and smallcap 100 index is closing rise 0.60%. Speaking of various sectoral indices Media, Realty And PSU Bank stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, December gold opened at Rs.5337, fell from a high of Rs.53458 points to a low of Rs.53337 with a rise of 220 points, a trend of around Rs.53458 and December Silver opened at Rs.64083, fell from a high of Rs.64562 points to a low of Rs.63949, with a rise of 343 points, a trend of around Rs.64248.
We remain sanguine with the uptrend and would advocate the traders to utilize the dips to add long position in the index. Also, we expect strong moves outside the indices as the midcap space has witnessed a multi-month breakout and could unfold a new leg of rally in the comparable period. Simultaneously, one should stay abreast with global and domestic developments on a regular basis and continue with a similar buy on decline strategy till the time important supports are held comfortably.
Markets witnessed profit-taking and lost over half a percent, taking a breather after the recent surge. After the flat start, the Nifty index gradually inched lower in the first half, followed by range-bound movement till the end. Consequently, the Nifty index settled at 18,695; down by 0.62%. Meanwhile, sectoral pack traded mixed wherein realty and metal counters were in the limelight while auto and energy traded subdued. Amid all, the buoyancy on the broader front kept the traders busy till the end.
Technically, the important key resistances are placed in Nifty future are at 18880 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 18909 – 18939 levels. Immediate support is placed at 18676 – 18404 levels.
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