Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Market Commentary

| More

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

Posted On: 2019-06-13 16:49:16

Derivatives view by Ms. Sneha Seth (Derivatives Analyst, Angel Broking):

"Last weekly expiry concluded on extremely negative note; but fortunately the pessimism didn't last too long. Since last Friday, we have been witnessing boredom in our markets as the benchmark index is clearly stuck in a range of 11800-12000. Last Friday, index gave a sharp recovery from the 20 DMA and follow-up buying continued for next two sessions to march towards the sturdy wall of 12000. However, index failed to sustain at the higher levels which was then followed by yet another round of profit-booking from Tuesday's high. Today, for the major part of the day, we had a rub off effect of last couple of day's selling and in this process, went on to almost test the 11800 mark. But once again the 20 DMA acted as a sheet anchor which eventually resulted into a v-shaped recovery to reclaim 11900 on a closing basis.

The banking index continued its consolidation for the third consecutive week and the open interest activity in futures segment remained subdued. It has been observed that BANKNIFTY has been finding support around 30600-30700 since last two weeks. Today, once again we saw demand picking up at these zones to conclude at a kissing distance from 31000. For the coming weekly series, 30500 on the lower side and 31500 on the higher side are attracting traders' attention.

During the week, we hardly saw any fresh build-up in Nifty as well as BankNifty futures. In fact, stronger hands too hardly added fresh positions in index and stock futures segment. They preferred lightening their existing positions in this consolidation phrase. However, they bought both index call and put options in this period. As far as the activity in the cash segment is concerned, we witnessing a decent selling figure of Rs. 1217 crores in last five sessions. In Nifty options front, decent amount of writing was visible in ATM puts in every decline which provided support to the market. For the coming weekly series, the maximum open interest concentration is seen in 11800 put and 12000 call. The fear index declined from 15.50 to 13.66, the falling INDIAVIX is certainly a sign of strength for the market.

To conclude, the weekly expiry gone by has left us with no major evidence in F&O space. At this point in time, 11800-11850 remains an immediate base for the Nifty; whereas, resistance is placed around the psychological mark of 12000. However, considering the recovery seen in today's session, we soon expect Nifty extending its upmove beyond 12000 in the coming week. Hence, traders are advised using declines to add-on fresh long. We have been observing that the Metal counters have been showing some respite after quite some time. Considering the long formation seen in the few individual counters we expect further upside in this space going ahead."

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

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

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

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

disclaimer copyright © 2005 - 2019