|
Type |
R1 |
R2 |
R3 |
PP |
S1 |
S2 |
S3 |
|
Classic |
17,914 |
18,159 |
18,614 |
17,459 |
17,215 |
16,759 |
16,515 |
|
Fibonacci |
17,726 |
17,891 |
18,159 |
17,459 |
17,192 |
17,026 |
16,759 |
|
Camarilla |
17,734 |
17,798 |
17,862 |
17,459 |
17,606 |
17,542 |
17,478 |
On Monday morning, the SGX Nifty pointed to a sluggish start on muted global indicators. However, during the pre-opening period, the news came out regarding the merger of two huge companies, HDFC Ltd and HDFC Bank. This led to an outpouring by these two heavyweights, which then rubbed off on the broader market. The most important indices, the Nifty and Bank Nifty, took off right from the start. With the HDFC conglomerate known for its solid reputation, this news flow gave the rally a much-needed boost. As a result, Nifty zoomed towards 18000 and maintained its stable stance throughout the day despite some small profit bookings mid-session. The spectacular parade on Monday was followed on Tuesday morning by a quiet start in the countryside. However, in initial trading, small gains simply disappeared and the index slipped into consolidation mode thereafter. Profit booking extended somewhat in the first half and as it progressed the Nifty tested the 17950 level. Fortunately, buying resumed as we entered the second half and recouped all losses. However, towards the end of the fag, the market suddenly became jittery, resulting in a sharp downtrend that also slipped below the morning low. Finally, Nifty finished the session convincingly below 18,000, losing over half a percent. The tail-end profit booking in the previous session was extended at the open itself on Wednesday when we experienced a jittery start on sluggish global cues. Barring a mid-session try, the index remained under pressure, hovering around the bottom for most of the day. As a result, the Nifty ended the session just above 17800 by losing another eight tenths of a percent. Thursday's session replicated the previous session as we first saw a gap to the downside on sluggish global cues and then, despite a mid-session rally, ended the session close to a daily low. In contrast to Wednesday, however, the trading range was slightly larger. Finally, the Nifty ended the weekly decline on a negative note slightly below the 17650 level, losing another percent. Friday market broke a three-day losing streak to finish higher with Nifty above 17700 after the RBI's monetary policy committee kept interest rates on hold. Finally, the Sensex was up 412 points to 59447 and the Nifty was up 144 points to 17784. The market has been cautious in the last 2-3 days ahead of the RBI meeting and its future policy stance. Actions in line with market expectations led to a recovery rally. The focus has shifted to the Q4 earnings season, which starts next week and is being initiated by the IT and banking sectors. The outlook for the banking sector is robust on the back of a rapid pick-up in credit growth and improving balance sheets, while the outlook for IT is mixed as the fourth quarter is seasonally weak.
NIFTY: A STRONG SUPPORT WILL BE @ 17215;
STRONG RESISTANCE LEVEL SEEN @ 18159
The benchmark Nifty found support around the previous session's low, leading to a positive close for the day. On the upside, however, the Nifty found resistance around the lower band of the rising channel. In the future, the trend could continue in the short term. On the top end, the index might face resistance at 18159, while on the bottom end, there is support at 17215.
TECHNICALLY
SPEAKING
Markets ended their 3-day losing streak as investors bought again after the RBI said in its monetary policy announcement that it would continue its accommodative stance and stated that inflation would cool going forward. Sentiment was also supported by a rise in other global indices, boosting investor confidence, although concerns over rising US bond yields, likely rate hikes and sanctions on Russia continued to weigh on markets. Technically, after a short-term correction, on weekly charts the Nifty has formed a doji candlestick formation that clearly shows the indecisiveness between the bulls and bears. The market took support near the 10-day SMA and has formed a promising reversal pattern that is suggesting a continuation of a pullback rally in the near future. We believe that the bounded texture is likely to persist in the short-term. For the bulls, 17215 would be the key support zone above which the index could reach the 17914-18159 level. On the other hand, if the index closes below the 10-day SMA or 17459, it could reach the 17215-16759 levels.
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