Midcap and smallcap indices rose over a percent each this past week, outperforming the headline index, and there are some stocks that investors can look at buying this week.
As market breadth is picking up, traders are advised to shift their focus on stock specific opportunities. On the index, a break below 10,500 could fuel selling pressure while a break out above 10,630 shall extend the rally.
Formation of a strong bull candle after a bearish candle suggests that bulls have taken over D-Street at least in the near term and as long as Nifty sustains above 10200 levels the bulls are likely to take the index towards 10350 levels.
Doji is more of an indecisive pattern where both bulls, as well as bears, fail to regain control. Formation of a Doji after a ‘Long White Day’, a Doji pattern signals nervousness on D-Street and we could see the index turning volatile on the expiry day as well.
The Nifty50 index made a strong bearish candle on the weekly charts and a small bearish candle on the daily charts on Friday.
The Nifty50 witnessed profit booking decline soon after it reclaimed 10200. The index has crucial support around 200-DEMA but one thing is clear that the current market structure closely resembles sell on rallies kind of markets.
The Nifty50 opened at 10,051 and rose to an intraday high of 10,155. It slipped to an intraday low of 10,049 before closing the day 30 points higher at 10,124.
The index which opened at 10,405 rose marginally to hit its intraday high of 10420 before bears took control. The selling pressure took the index to its intraday low of 10,346. The index closed 50 points lower at 10,360.
The index is now trading above its crucial short-term moving averages which is a positive sign for the bulls. But, Supertrend and MACD are both in SELL mode. If the bounce back sustains, we could see these indicators turning to a buy.
A ‘Bearish Belt Hold’ pattern is formed when the opening price for the week becomes the highest point of the week and the index declines throughout the trading week making up for the large body. The candle will either have a small or no upper shadow and small lower shadow.
The Nifty50 formed a bearish candle for the sixth consecutive day in a row and analysts feel that it will be hard for the index to breach the 200-DEMA in a hurry.
Watch the interview of Sudarshan Sukhani, Ashwani Gujral, Mitessh Thakkar, Rajat Bose, Prakash Diwan and Chandan Taparia with Anuj Singhal, Latha Venkatesh and Sonia Shenoy on CNBC-TV18.
Investors should tread with caution in the month of March as investors might want to take a directional call as to what US Federal Reserve will do in its policy meeting due later in the month.
Investors should remain cautious as a close below 10300 could signal that bears will take over control. However, if the index starts to trade higher, the next important levels to watch is 10,630, suggest experts.
The Nifty50 which opened at 10,488 rose to an intraday high of 10,535 which made a long upper shadow, but bears quickly took control and pushed the index below 10,500, which made a long lower shadow on the daily charts.
India VIX moved up by 1.66% at 13.92. On the options front, maximum Put open interest is placed at 10400 followed by 10000 strikes while maximum Call open interest is placed at 10700 followed by 11000 strikes.
The Nifty50 broke above its crucial 50-days exponential moving average (DEMA) placed around 10,560 on closing basis which is a positive sign for the bulls. Traders can create long positions on the index now with a stop loss below 10,500 markets.
Watch the interview of Mayuresh Joshi of Angel Broking Ltd, and Mitessh Thakkar of mitesshthakkar.com with Nigel D'souza and Mangalam Maloo of CNBC-TV18, where they shared their readings and outlook on the market and also answered viewer stock queries.
Watch the interview of Sudarshan Sukhani, Ashwani Gujral, Mitessh Thakkar, Rajat Bose, Deven Choksey, and Manoj Murlidharan with Anuj Singhal, Latha Venkatesh and Surabhi Upadhyay on CNBC-TV18.
Watch the interview of Gaurang Shah of Geojit Financial Services and Ashwani Gujral of ashwanigujral.com with Latha Venkatesh and Prashant Nair of CNBC-TV18, where they shared their readings and outlook on the market and also answered viewer stock queries.
Watch the interview of Sudarshan Sukhani, Ashwani Gujral, Mitessh Thakkar, Sandeep Wagle, and SP Tulsian with Anuj Singhal, Latha Venkatesh and Sonia Shenoy on CNBC-TV18.
Watch the interview of Ashwani Gujral, Mitessh Thakkar, Siddharth Bothra, and Sudip Bandopadhyay with Anuj Singhal, and Surabhi Upadhyay on CNBC-TV18, in which they shared their readings and outlook on market technicals and fundamentals side of the market as well as specific stocks and sectors.
Watch the interview of Ashwani Gujral, Mitessh Thakkar, Mayuresh Joshi, S P Tulsian and Ambareesh Baliga with Anuj Singhal and Surabhi Upadhyay on CNBC-TV18.
Watch the interview of Ashwani Gujral, Prakash Gaba, Sandeep Wagle, and Chandan Taparia with Anuj Singhal, Latha Venkatesh and Sonia Shenoy on CNBC-TV18.
Watch the interview of Ashwani Gujral, Mitessh Thakkar, Prakash Gaba, Sandeep Wagle, SP Tulsian, and Amit Gupta with Anuj Singhal, Latha Venkatesh and Sonia Shenoy on CNBC-TV18.