Mr. Romesh Tiwari, Head of Research, CapitalAim
The Benchmark Nifty50 Index this week remained range bound on a weak note and traded between 20-day & 50-day moving average on the daily chart. This week nifty neither breached the resistance of 11860 levels nor did it breach the support of 11600 levels on the daily chart.
On Friday market, Benchmark Nifty50 remained weak for the entire day and closed at 11724.10 levels. The index sustained within the levels of 11825 to 11700 for the day below 20-day moving average on the daily chart but closed with a negative bias with a loss of 118.20 points or 1.00% on daily basis. The Nifty index is sustaining below 20-day moving average on the daily chart which is around the resistance of 11860 levels while it is also sustaining above 50-day moving average on the same chart. It is looking weak on daily charts as it is consolidating downward below the resistance of trend line drawn from the high of 4-June 2019 and RSI is also looking weak which is now placed at 48.01 levels. But since the index is range bound so, one should be very cautious for the next week and take any position only once either the Nifty sustains above 11970 levels or below 11600 levels on the daily chart. For the next week, stocks of banking & finance, pharma and auto sectors could be expected to show bearish movements.
There is an expectation that, the next week U.S. and Chinese president could meet in Japan during G-20 meeting to discuss ways to resolve trade war but recent tensions between Iran and the U.S. denting the market sentiments. On the domestic front, Govt. of India is expected to raise the deficit target in the budget, which is to be presented in the first week of the next month as a big shortfall in net tax collections is the main factor for such expectation and this further indicating to the slowdown of the economy. But the actual conditions would be clear only once the budget is presented and till then the market may remain sideways, however; international events could help it break the range to either of the sides.
Next week, in the Indian market, there would be no important data. On the international front, there would be OPEC Meetings and data of CB Consumer Confidence on Tuesday, Core Durable Goods Orders on Wednesday, Final GDP on Thursday and there would be G20 Meetings on Friday & Saturday.
Jubilant Food (Fut) : SELL| Below: Rs 1240| Target: Rs 1202| Stop loss: Rs 1278|
Jubilant Food is overall in a bearish trend on the daily chart from 6 June 2019. This week it breached the immediate support at 1258 levels and closed below it. The 20, 50 & 120 day moving averages on daily charts, has almost converged downward and MACD has shown bearish crossover. RSI is also looking weak on the same chart and now placed at 39.46 levels.
HDFC Ltd (Fut) : SELL| Below: Rs 2130| Target: Rs 2065| Stop loss: Rs 2194|
HDFC Ltd has corrected from the higher levels since 6 June 2019 on the daily charts and now sustaining below the 20-day moving average below 2200 levels. Also, MACD is showing a sell signal along with the RSI on the daily charts, which is correcting from the over-bought zone and now showing sell signal being placed at 50.17 levels.
ConCor: BUY| above: Rs 556 | Target: Rs 573 | Stop loss: Rs 539|
Container Corporation is overall in a bullish trend since 15 May 2019 and now, it has shown the breakout of the bullish pennant pattern and also breaks out of the resistance levels around 553 on the daily chart. RSI on daily charts looking strong which is now placed at 67.34 levels while MACD on the same chart, has shown upward crossover.