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

| More

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

Posted On: 2019-05-19 23:35:51

Mr. Mustafa Nadeem, CEO, Epic Research.

Nifty on the daily chart has formed a piercing pattern as bulls return despite clouds of volatility. A week that was turning out to muted saw a sharp recovery in indices and Nifty on last trading session to soar and close above 20 Days MA at 11407.

At this point in time investors should, the volatility has been high for the last few weeks and is at 2015 levels. So the options premiums are very high and on the top of it, and due to high vol; directional trades become very risky. It is a nightmare for retail or small investors. This kind of market is for traders with a good amount of capital and knowledge of markets and options. There are few strategies that investors or traders should keep in mind to hedge or safeguard themselves from volatility. In a very simplistic approach, one should avoid this market for trading or even does then stop losses are everything that can save you from unfavorable moves. Secondly, one should also use options anyhow in any positions that are taken or being held on. if its long positions; Puts should be used and vice-versa. If it's a options trade; one should prefer a multi-leg strategy.

The coming week, there is an event that is able to produce long term trends in the market and is the factor that sets the tone for wealth creation. The political event like election results usually produce the trends that last for years. Hence it becomes very important for the economy; the result and its impact on the stock market that in turn affects the investors across the globe.

In result week, Nifty may see trading between the range of 11200 - 11600. As per derivatives data, there is writing seen in 11200 and 11300 PE which may continue to act as strong support. 11100 is already well supported with 100 days SMA. On the higher side, 11500 PE has also seen the writing as well as bulls aggressively charged on last trading session. Fresh long positions are seen in Nifty CE side at strikes of 11500 & 12000. A lot will also depend on the exit polls and their numbers. This will further put decisiveness in the price action.

In the Coming week, we believe the trend may continue in favour of bulls If Nifty is able to close above 11550. Above that (11550), we may see a sharp move and short covering that can thrust and take Nifty to 11750 - 11800 in a furious way. On the downside, we are well supported at 11150 - 11100 range; so any decline towards these numbers shall be utilized by bulls.

Also, we believe the volatility which is trading near 29 levels may see some bearish moves and compress as data of exit polls comes in. But any numbers of exit polls that point to indecisiveness can further fuel this rocket that can hurt market sentiments. So traders must also be prepared for an element of surprise.

There can be sharp movement in market but with the election's exit polls; they bring some decisiveness on the table as well. So any confusion or indecision which is there and is inherent at present in price action may disseminate with time. So the volatility we are seeing which is heightened and is at 4 years high may see rollback and evaporate.

BAJFINANCE - Stock outperformed well with huge volumes and closed near to days high. It also formed three white soldiers pattern on the daily chart. We recommend buying above 3320 for the target of 3355 with the stop loss of 3300.

DCM SHRIRAM - Stock was positive throughout the day and closed in green with good volumes. It also formed a flag pattern on the hourly chart. We recommend buying above 570 for the target of 580 with the stop loss of 560.

IOLCP - Stock formed a symmetrical triangle on the daily chart and it took the support of the lower trendline of the triangle with average volumes. It also formed a pennant on the hourly chart. We recommend buying above 178 for the target of 181 with the stop loss of 175.


Source: Equity Bulls

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





Other Headlines:

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

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

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







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

disclaimer copyright © 2005 - 2019