24 November 2016


Daily candle chart shows a hammer formation that indicates a bullish reversal. Huge volatility is seen today on the account of expiry of November series derivative contracts as investors will carefully analyze the economic effect of demonetization in short term before roll over the contracts into next months. Market ended lower on November F&O expiry day as the rupee crashed to a fresh all-time low of 68 amid sustained foreign fund outflows and the greenback's surge in overseas markets. The Sensex ended down 192 points at 25860 and the Nifty closed 58 points lower at 7965. Meanwhile, the much-awaited Goods and Services Tax (GST) Council meeting, slated for Friday, was also postponed by a week.
On the way up, the Nifty needs to cross 7980 through 8010 to post a sustainable recovery. However, as a confirmation, we need a close above 8050 for any fresh upswing. We feel that probably the correction that the market saw for the past few days was a good bit of consolidation and correction. Though there was a huge sector churning, which was taking place, it has seriously given the markets some very good strength. It is great for the health of the market that intermittent corrections come. It is showing all the classical signs of a good bull market wherein three-four days' correction gets bought into on a given day like today.
More about intraday tips on Google +
RESISTANCE: 7980, 8030, 8070
SUPPORT:  7950, 7920, 7880

1 comment: