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GST meet scheduled next week will give direction to the market: Epic Research

Posted On: 2019-01-05 08:28:12

Mr. Mustafa Nadeem, CEO, Epic Research

Nifty marks a Bearish reversal pattern, Bearish Engulfing, on the weekly chart. Though directionless market continues to be in place as Nifty consolidated between the range of 10900 to 10600 for the fourth week. The overall global markets were also in a range given the recent festive season and New Year holidays witnessing thin volume.

The Start to overall year was with mixed data as A lower earnings guidance from Tech Giant Apple kept upside in check while also a weaker data from the US and China witnessing a manufacturing downturn. hence all this amounted to a negative sentiment with crude oil prices below $50 mark sparking global demand concerns.

Indian market did see some buying as RBI approved the merger of DB, VB, and Bank of Baroda in an attempt to further consolidate and integrate the banking system. This further sparked a rally in other PSU Banks like Syndicate, Allahabad, OBC etc. PSU Banks have already seen some long built up while leading momentum in Financials and few energy stocks have kept lower levels in check for Nifty at 10600 - 10500. Bank Nifty, on the other hand, has been neutral making a shooting star pattern showing indecisiveness.

A bearish engulfing is a reversal pattern where the previous range of trading activity(positive) is engulfed by bears making it a complete rejection for bulls at higher levels. Hence the pattern indicates the upside is now very important for bulls to breach which is placed at 10900.

RSI is dancing around 50 zone which indicates the consolidation may continue. A decisive breakdown from 10500 on the downside is signaling lower levels of 10100 while only a close above 10940 will give us a short-term target of 11150 and above that 11450. hence it all comes down to which way the more power lies.

Next week, RBI meet with foreign investors as the decline in corporate bonds haunts the domestic corporate sentiments. It comes after a month when RBI mandated to limit FPI exposure below 50% in single corporate bond and 20% of exposure of portfolio in any single group.

A key trigger for the market will be GST meet and another round of cuts in tax rates on many of the items. It has been the point of discussion on the street and further may give some direction as it happens just a month before the Interim Budget. Not Just That, We have TCS lined up with earnings along with Infosys, Indus Ind. So all in all a lot of big names will be driving the cues for its sector and will be watched critically. Post that Manufacturing numbers, Industrial production, and inflation.

It will be a volatile week but certainly where we may see some Directional move.

Stocks:

EDELWEISS - The open and low was the same of the stock and it closed near to days high with good volumes. It also gave closing above the 200 EMA on the hourly chart. We recommend buying above 183 for the target of 185 with the stop loss of 181.50.

UNIONBANK - Stock outperformed well with good volumes and closed near to days high. The stock gave closing above 200 EMA on the daily chart. We recommend buying above 93 for the target of 94.50 with the stop loss of 91.50.

EQUITAS - Stock has shown weakness and closed near to days low with average volumes. The stock has a strong resistance on the daily chart of trend-line. It also formed a flag pattern on the hourly chart. We recommend selling below 119 for the target of 117 with the stop loss of 121.


Source: Equity Bulls

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Other Headlines:

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

Market Cues for the day - June 12th, 2019 - Angel Broking

11850-11900 to act as demand zone now: Angel Broking

Nifty Can Move Downside If Fails to Sustain Above 12000 levels: CapitalAim

Gradual upmove from the support, broader participation awaited: Angel Broking

Index consolidates in a range, 'IT' counters witness buying momentum: Angel Broking

RBI Circular will have a Positive Effect on NBFC & Banking sectors: CapitalAim

RBI circular for Resolution of Stressed Assets will be a relief to businesses facing temporary financial issues

Index defends its support, but ends well below the 12000 mark: Angel Broking

Market to Trade in a Wide Range for the Next Week - CapitalAim

Nifty concludes above 11850; courtesy to Banking and IT space: Angel Broking

RBI Policy update from Mr. Romesh Tiwari, Head of Research, CapitalAim

Reaction on RBI policy from Mr. Mustafa Nadeem, CEO, Epic Research

Views on RBI Policy - Kumaresh Ramakrishnan, Head - Fixed Income, DHFL Pramerica Mutual Fund

Nifty tanks below 11850 post RBI rate cut, but no major shorts: Angel Broking

Market may see further pressure in Nifty : Epic Research

Sell off post RBI policy, banking stocks drag: Angel Broking

Market Outlook - June 4, 2019 - Angel Broking

12000 conquered convincingly, courtesy to IT and Auto counters: Angel Broking

Long Short Ratio back to 60%: Angel Broking

The market will keenly look forward to the first Cabinet meeting and RBI Monetary Policy - CapitalAim

Next week market will look for RBI monetary policy crude price and global market sentiment: Epic Research

Rollover Report for May-June 2019: Angel Broking

Be prepared for wild swings, hopeful of a favourable outcome: Angel Broking

Election results and exit polls will drive market : Mustafa Nadeem, Epic Research

Still no respite, the last ray of hope now around 200-SMA: Angel Broking

Market Strategies - May 14, 2019 - Market to focus on fresh triggers

IIP and Manufacturing number will provide some breather : Epic Research

Market will focus on Q4 results and final phase of election - CapitalAim

Market Strategies for Wednesday May 8, 2019 from Share India Securities Ltd

No major movement in the truncated week, 11700 defended successfully: Angel Broking

Sectors like Energy & PSU Bank will be in limelight for the coming week market: Epic Research

Q4 earnings, Election vibes, Oil and global markets that will steer market next week - CapitalAim

11650-11700 to act as a sheet anchor: Angel Broking

Nifty Rollover highest since September 2016: Angel Broking

11549 becomes a sheet anchor: Angel Broking

Crude Oil & Final Phases of Elections in the coming month will add the volatility in market: Epic Research

The VIX and elevated crude oil prices will add bullish sentiments to the market: Epic Research

Banking once again becomes the culprit, all eyes on 11549: Angel Broking

Expect 11550 is the crucial support level for Nifty: CapitalAim







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