Nifty is trending higher showing strengths in the Daily chart. It is moving in the channel bouncing strongly from the trendline support.
Immediate targets are 6421. The chart structure is bullish with SMI and RSI trending higher, the short term correction in Nifty is complete. RSI and SMI are making higher lows with every move of Nifty.
Nifty Futures can be bought at the current levels.
CMP - 6313
Support - 6220.
Target - 6480 , immediate targets - 6420.
If Nifty trends lower, there is a strong support at 6140, unless that is broken chances are markets would break the higher levels attained on 9th Dec of 6416.
Oil & Gas Index and Consumer durables will provide the much needed support to break the 6400 barrier. There is little support coming from the Bank Nifty.
Daily Chart +ve bullish.
Lets look at the individual factors that may affect Nifty.
BankNifty:-
Index has taken support at the lower trendline. There would be choppiness in the Bank nifty. It may not provide much support for the Nifty. But all said and done, it should be noted that momentum indicators are showing Negative divergence in the daily charts.
Though the momentum indicators are showing positive trend, but i expect the banking stocks to be sold off before there is any meaningful pullback.
CMP - 11459
SL - 11619
Target - 11197
Immediate resistance at 11660, trailing stoploss can be applied at these levels.
Daily Chart:-
Hourly Chart:-
VIX;-
Volatility index, the fear index at 8 month low of 14.6% as against 18% for 9th dec showing there is bullish stance taken by market makers. This validates the above notion that market is trending higher. Oscillators have low value of -13.
In the below chart, VIX index is overlayed on the Nifty Index. As can be seen from the charts that VIX is trending below the moving average of 10.
Lets look at the individual components of Nifty and how are they poised going forward.
Gold, Spot (USD)
Gold has given sharp cuts. Price can correct from lower levels to 1250, however these correction can be used to get into short position with target of 1170. Negative divergence is evident in the momentum indicators.
CMP - 1212
SL - 1250
Target - 1170.
USD/INR
INR is strong relative to USD. this can be attributed to low volatility in the market owing to holidays or absence of any significant news in FX market. Though there has been positive news coming from US economy, but 62.4 will provide strong resistance for any up move by USD. 60.87 provides strong support for USD.
Hence, the currency move is expected to be in consolidation phase. So, net-net Positive for the Indian markets.
Brent Crude
Short term bias for the brent crude is Positive Bias for target of 115, however it can face strong resistance for any upward move.
This is negative for indian markets, but given the recent announcement by Indian govt to allow increase in the Gas prices would allow some release to the Oil companies. Hence would subsequently ease the subsidy burden and hence can be considered Net-net positive for the indian markets and INR crosses.
However, if price breaks above 115, then NIfty Positions should be taken cautiosly, as it will open higher levels for Crude and can be termed as bearsih signal for Indian Markets.
Lets look at the individual components of Nifty and how are they poised going forward.
Stock trends:-
Immediate targets are 6421. The chart structure is bullish with SMI and RSI trending higher, the short term correction in Nifty is complete. RSI and SMI are making higher lows with every move of Nifty.
Nifty Futures can be bought at the current levels.
CMP - 6313
Support - 6220.
Target - 6480 , immediate targets - 6420.
If Nifty trends lower, there is a strong support at 6140, unless that is broken chances are markets would break the higher levels attained on 9th Dec of 6416.
Oil & Gas Index and Consumer durables will provide the much needed support to break the 6400 barrier. There is little support coming from the Bank Nifty.
Daily Chart +ve bullish.
Lets look at the individual factors that may affect Nifty.
BankNifty:-
Index has taken support at the lower trendline. There would be choppiness in the Bank nifty. It may not provide much support for the Nifty. But all said and done, it should be noted that momentum indicators are showing Negative divergence in the daily charts.
Though the momentum indicators are showing positive trend, but i expect the banking stocks to be sold off before there is any meaningful pullback.
CMP - 11459
SL - 11619
Target - 11197
Immediate resistance at 11660, trailing stoploss can be applied at these levels.
Daily Chart:-
Hourly Chart:-
VIX;-
Volatility index, the fear index at 8 month low of 14.6% as against 18% for 9th dec showing there is bullish stance taken by market makers. This validates the above notion that market is trending higher. Oscillators have low value of -13.
In the below chart, VIX index is overlayed on the Nifty Index. As can be seen from the charts that VIX is trending below the moving average of 10.
Lets look at the individual components of Nifty and how are they poised going forward.
Gold, Spot (USD)
Gold has given sharp cuts. Price can correct from lower levels to 1250, however these correction can be used to get into short position with target of 1170. Negative divergence is evident in the momentum indicators.
CMP - 1212
SL - 1250
Target - 1170.
USD/INR
INR is strong relative to USD. this can be attributed to low volatility in the market owing to holidays or absence of any significant news in FX market. Though there has been positive news coming from US economy, but 62.4 will provide strong resistance for any up move by USD. 60.87 provides strong support for USD.
Hence, the currency move is expected to be in consolidation phase. So, net-net Positive for the Indian markets.
Brent Crude
Short term bias for the brent crude is Positive Bias for target of 115, however it can face strong resistance for any upward move.
This is negative for indian markets, but given the recent announcement by Indian govt to allow increase in the Gas prices would allow some release to the Oil companies. Hence would subsequently ease the subsidy burden and hence can be considered Net-net positive for the indian markets and INR crosses.
However, if price breaks above 115, then NIfty Positions should be taken cautiosly, as it will open higher levels for Crude and can be termed as bearsih signal for Indian Markets.
Lets look at the individual components of Nifty and how are they poised going forward.
Stock trends:-
| CMP | SL (Buy) / Target (Sell) | Target (Buy) / SL (Sell) | Short Term Trend | |
| NIFTY 50 | 6313 | 6220 | 6420 | BUY |
| BANK NIFTY | 11459 | 11619 | 11197 | SELL |
| ACC | 1123 | 1116 | 1130 | BUY |
| AMBUJA | 184.9 | 182 | 189 | BUY |
| AXIS BANK | 1293 | 1261 | 1300 | BUY |
| BAJAJ AUTO | 1936 | 1915 | 1950 | SELL |
| BHARTI AIRTEL | 328 | 332 | 313 | SELL |
| BHEL | 173.5 | 164 | 185 | SELL |
| BOB | 652 | 615 | 659 | SELL |
| BPCL | 352 | 355 | 342 | SELL |
| CAIRN | 324.5 | 319 | 331 | BUY |
| CIPLA | 405 | 398 | 416 | BUY |
| DLF | 171 | 160 | 188 | BUY |
| DR REDDY | 2519 | 2512 | 2560 | BUY |
| GAIL | 340 | 337 | 353 | BUY |
| GRASIM INDUSTRIES | 2713 | 2719 | 2702 | SELL |
| HDFC | 790 | 783 | 802 | BUY |
| HDFC BANK | 668 | 662 | 674 | BUY |
| HERO | 2088 | 2098 | 2055 | SELL |
| HINDALCO | 122 | 124 | 115 | SELL |
| HUL | 568 | 561 | 575 | BUY |
| ICICI BANK | 1110 | 1129 | 1042 | SELL |
| IDFC | 106 | 97 | 113 | BUY |
| INDUSIND BANK | 422 | 426 | 408 | SELL |
| ITC | 323 | 319 | 325 | BUY |
| JAI PRAKASH ASSOC | 53.7 | 54.4 | 52.75 | SELL |
| JINDAL | 261 | 267 | 244 | SELL |
| KOTAK MAHINDRA | 740 | 723 | 785 | BUY |
| LT | 1077 | 1102 | 1051 | SELL |
| LUPIN | 906 | 896 | 945 | BUY |
| MARUTI | 1773 | 1781 | 1753 | SELL |
| NMDC | 141 | 137 | 150 | BUY |
| ONGC | 292 | 283 | 305 | BUY |
| PNB | 635 | 601 | 650 | BUY |
| RANBAXY | 463 | 444 | 498 | BUY |
| RELIANCE | 878 | 872 | 915 | BUY |
| SESA | 201 | 199 | 204 | bUY |
| STATE BANK OF INDIA | 1770 | 1818 | 1681 | SELL |
| SUN PHARMA | 576 | 578 | 570 | SELL |
| TATA MOTORS | 371 | 369 | 377 | BUY |
| TATA POWER | 89.65 | 92 | 84 | SELL |
| TATA STEEL | 425 | 404 | 450 | BUY |
| ULTRATECH | 1770 | 1797 | 1705 | SELL |
Comments
Post a Comment