Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Market Commentary

| More

Increase in manufacturing production and a drop in WPI fuel inflation helped improve the market sentiments : Epic Research

Posted On: 2018-12-16 09:01:25

Mr. Mustafa Nadeem, CEO, Epic Research

Nifty has formed a piercing line pattern on the weekly chart indicating support at lower zone and closing almost within previous week's range pairing its half losses. This is a reversal pattern on the weekly chart which was amid all the factors that can contribute to price be it Domestic, International, Macro event or so.

The week started off with a gap down and negative sentiments following the global cues with western markets losing almost 3 - 6% in a major sell-off as volatility expanded. The OPEC meeting which was on the edge of being indecisive impacted the crude and concerns on global slowdown was triggered with a fall in crude prices. The markets also reacted and were shadowed by the recent arrest of Global CFO of a Mobile manufacturing giant.

That being said, The sudden resignation from RBI governor on Monday left markets and investors in the dark with Nifty seeing a gap down next market. Though a gap down to lower levels triggered some lower levels buying which supported the sentiments and amid the results of state elections market recovered. A rally was seen with market inching back to previous week's range and forming a piercing line pattern.

A piercing pattern is a reversal pattern that indicates the lower range of pattern as an important support which is a buying range for bulls and a pullback to that zone may see some buying.

The better than expected data of Industrial production at 8.1% VS 4.5% and drop in the inflation rate to 2.33% VS 3.38% boosted the sentiment neglecting any rate hike fears. Increase in manufacturing production and a drop in WPI fuel inflation also helped improve the sentiments.

All being said and done prices closed comfortably in a bullish zone of 10700 - 10900. This is an important resistance placed at 10900 as it's a pivot high and needed to break to see an extension of trend else we may see some consolidation going forward within the range of 10700 - 10900.

Going forward, with the absence of any data that or event that is major in nature on the domestic front, cues will be seen from western markets which are at crucial supports. Crude oil direction and USDINR will be critical to forming a bias in the market and seen leading the sentiments.

We suggest buying only if Nifty is able to close above 10920 for a directional target of 11150 else the range may continue to be 10700 - 10900.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

RBI nudges for growth - Acuité Ratings and Research

Market is waiting for government to provide some relief for FPI surcharge and stimulus for auto sectors - CapitalAim

3rd Bi-Monthly MPC Statement - Suman Chowdhury, President-ratings at Acuité Ratings and Research

View on RBI's monetary policy announcement - Mani Rangarajan

Post RBI Policy Reaction from Mr. Romesh Tiwari of CapitalAim

Nifty close above previous high after thirteen sessions: Angel Broking

Some recovery after testing sub-10800 levels, avoid fresh shorts: Angel Broking

Next Week Pharma, FMCG and Steel Sectors will be on Focus: CapitalAim

Sharp intraday correction in Nifty, but manages to close in the support range: Angel Broking

Midcaps show signs of some pullback: Angel Broking

Nifty at 200 DMA; 11108-11140 key support range: Angel Broking

This is a time for caution rather than being aggressive: Mr Mustafa Nadeem, CEO, Epic Research

Next week, the stocks of the pharma sector could show positive moves: CapitalAim

Rollover Report for July-August 2019: Angel Broking

Low Rollovers for the July series: Angel Broking

Still no respite, July series ends at two-month low: Angel Broking

Technical & Derivatives Report 25th July 2019: Angel Broking

FII has been largely negative post unfriendly budget - Mr Mustafa Nadeem, CEO, Epic Research

11300 - A make or break level in the near term: Angel Broking

Nifty above its crucial long term support of 200 days EMA: Mr Mustafa Nadeem, CEO, Epic Research

Marquee names succumbed to the selloff, 11300 becomes a key support now: Angel Broking

Market Wrap-up - Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking)

Options data hints scope of further upside: Angel Broking

Nifty surpasses the hurdle of 11640; buying seen in last hour of the trade: Angel Broking

IT comes to the rescue, broader markets under pressure: Angel Broking

Q1 result will drive the market in coming week : CapitalAim

Some respite on global cues, Auto and Metal stocks on a roll: Angel Broking

Boredom ahead of the event, all eyes on Finance Minister: Angel Broking

The volatility index tanks 4% ahead Union Budget: Angel Broking

Nifty reclaims 11900, focus shifts on the broader market: Angel Broking

Some respite on the global front, promising signs ahead of the budget: Angel Broking

Stronger hands reluctant rolling-over shorts: Angel Broking

Budget will shape the future trend of Equity Market :Epic Research

11750-11800 to act as a supply zone: Angel Broking

Finally some relief in the broader markets: Angel Broking

Finally Nifty surpassed 11850; courtesy to Banking and Metals space: Angel Broking

Once again Nifty rallies from 11650, expect upmove towards 12000: Angel Broking

OTM call writers covered their positions: Angel Broking

Indices consolidate in a range; BankNifty outperforms: Angel Broking

11600 defended successfully, remain hopeful of a strong rally: Angel Broking

Next Week, Stocks of Banking & Finance, Pharma and Auto Sectors could be Expected to Show Bearish Movements - CapitalAim

Nifty can remain rangebound with 12000 on the upside to 11700 - 11600 on the downside - Epic Research

Exit poll gap became the savior, rally to extend further: Angel Broking

Fed rates compromise between monetary policy and Trump: Angel Broking

11630 - 11610 are the levels to watch out for: Angel Broking

Nifty is now all set for the Budget : Mustafa Nadeem, Epic Research

Negative News From the Finance Sector can be a trigger for a bigger correction before the budget session: CapitalAim

Index rebounds from its support; expect uptrend to resume: Angel Broking

V-shaped recovery from 20-DMA, except rally beyond 12000: Angel Broking

11850-12050 is an immediate range: Angel Broking







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019