Mr. Mustafa Nadeem, CEO, Epic Research.
Nifty ends the week with an Inside range as muted cues amid Global geopolitical tensions remain intact between the U.S and Iran, U.S China Trade war Tariffs and the ongoing G20 meeting. The market is awaiting any positive outcome from it while at the same time the market is also embracing for the event that is about to shape the trend for future, in essence, The budget.
As per price action, Nifty was pretty much within the range that we have seen in the previous week and managed to recover the losses marginally. Since it was the monthly expiry week, we have seen writers eating away the premium. As per Derivatives data, Nifty managed to have rollovers of 80% which is above its 3 months average.
Technically, we have seen some contraction in MACD Hist which indicates there may be some sideways consolidation in the coming week.
Our concern is on the strength which is lacking or say deteriorating every week. There is a divergence on RSI (14) clearly which signals a caution in a bullish approach in the short term. Secondly, the trend indicators are showing markets to be in a no-trend state for now while the bias remains bearish in the short term.
In the coming week, We have a very important event, budget, that is about to shape the future trend of Equity markets. There will be possibly an increase in volatility and may further hurt any directional trader for the very short term. Since the importance of the event is high and is able to produce large trend we believe it is better to be on the sideline and see the outcome.
ICICIPRULI - Stock performed well with good volumes and closed near to days high. It gave trend line breakout on a closing basis. We recommend buying above 390 for the target of 395 with the stop loss of 385.
OBEROIRLTY - Stock has given the breakout of the trend line on a closing basis on the daily chart with good volumes. The RSI is also showing strength on the daily chart. We recommend buying above 615 for the target of 625 with the stop loss of 605.
KEC - Stock took the support of the 200 EMA on the daily chart and forming well. It formed a flag pattern on the daily chart. We recommend buying above 323 for the target of 328 with the stop loss of 318.