The Nifty options data signifies the highest accumulation in 10500 PE of 81 lakh shares. Close to 15 million shares open interest (OI) is outstanding in the vicinity of 10500-10600 puts indicating vital support zone for Nifty
The rally is on the backdrop of favourable macroeconomic data and strong global cues and ease in geopolitical tensions; however, strength in crude does pose a concern for Indian macros
Traders are advised not to base any decisions on Tuesday’s price action as the market is awaiting triggers from the outcome of the Reserve Bank of India’s policy outcome due on Wednesday.
Analysts are not advising investors to go and sell but they can maintain some cash which could further be used to get into quality stocks on declines.
Traders can stay long on the index with a stop below 9944 with a target of 10,350.
The Nifty50 closed flat but well above its crucial support level of 10,000 last week. Despite closing in negative territory, the index made a bullish candle and formed a ‘Hammer’ like pattern on the daily candlestick charts.
On the weekly basis, the Nifty50 touched an all-time-high at about 10,110 mark but failed to cohere at that level.
For the medium term we remain extremely positive on markets and by the end of 2017, we might scale another milestone in the form of 11,000 marks.
Fundamentally, the valuations are stretched and that is why we are seeing slow movement in the index with select stocks gaining majorly.
Stocks which outperformed index include names like Magnum Ventures which rose 171 percent, followed by Venky’s India which rallied 91 percent and Goa Carbon rallied 88 percent in the same period.
A ‘Three White Soldiers’ is formed when the stock or the index witnesses three bullish candles which solidify reversal of a downtrend.
A strong bull candle after a bullish candle suggests that bulls are in control of D-Street and any dips seen today were largely bought into.
A bearish candle is formed when the index closes below its opening level. It signifies that bears kept the selling pressure throughout the trading session.
A Bearish Belt Hold pattern is formed when the opening price becomes the highest point of the day (intraday high).
“The triggers are not yet visible and it looks like there is some profit taking. Uncertainty is the staple diet of the market and that should not worry us too much. To minimize risk, investors should look at stocks which offer individual margin of safety,” he said.
The Nifty is likely to touch lower levels near 9,400-9,390 in the next trading session where a close below could prove even worse for the near term.
The structural uptrend still looks strong and intermittent corrections should be bought into, suggest experts.
The only positive takeaways from Friday’s session is that bulls managed to defend its crucial support level of 9,400.
The chart structure was giving some hints about possible consolidation or correction but experts believe any correction should be bought into for the long term.
A hanging man is usually formed at the end of an uptrend, but for now, there are no visible signs.
A strong bull candle is formed when the market witnesses sustained buying interest from the bulls for the most part of the trading day which is a bullish sign.
The Nifty opened the trade at 9,311.45 and closed at 9,314.05 which is almost similar to the opening level and that resulted in a cross or a plus sign on the charts. It rose to an intraday high of 9,338.70 and a low of 9,297.95 in trade on Monday.
The Nifty50 closed above its crucial resistance level of 9,300 on Friday and made a bearish candle on the daily charts. But, on the weekly charts, the momentum remains intact as the index registered a bullish candle.
Almost 800 stocks more than doubled investors’ wealth during the same period, while 20 stocks claimed 1,000-bagger return on the BSE.