NIFTY OUTLOOK REPORT

NIFTY FUTURE TIPS | NIFTY OUTLOOK REPORT

NIFTY FUTURE :	R1:8178	R2:8210	R3:8232
PIVOT :8156	S1:8124	S2:8102	S3:8070

  

NIFTY DAILY CHART

              CHART INTERPRETATION

Technically, A strong break below 8000 will increase the downside pressure and drag it to 7900/7800. Traders can go short on a break below  8000.On the other hand, a decisive break above 8200 will ease the downside pressure and take the index futures higher to 8300 and 8350 thereafter. MACD and Price ROC are both negative and continue in sell mode. RSI (40) suggests bearish momentum. This week, the indices tested the short term average of 22dma Nifty – 8242 but could not close above it. the indices continue to remain below the medium term average of 50dma Nifty – 8430 but above the long term average of 200dma Nifty – 7600. Thus the trend in the short term and medium term timeframe remains bearish whereas the trend in the long term timeframe still continues to remain Bullish.

MACD and Price ROC are both negative and continue in sell mode. RSI (40) suggests bearish momentum.

INDEX OUTLOOK

NIFTY FUTURE:  Nifty was down 14 points and closed at 8,139. It opened at 8,178.20 points, hitting a high of 8,178.70 and low of 8,127.45. It was a complete choppy session, as market was seen grinding in a narrow 25 points trading range especially in the second half. Nifty was unable to surpass the crucial 200-DMA which is now placed at 8221. In addition, Nifty also breached below the 8150 support zone for the first time this week after managing to hold on throughout the week. A close below the support zone indicates that further weakness is likely on the cards. Any kind of recovery will once again find stiff resistance at the 200-DMA of 8221 and its immediate previous peak of 8250. The India VIX (Volatility) index was down 2.57% at 15.25. The BSE Midcap closed at 12236.5 and Smallcap indices closed at 12113.5, both closing marginally down. The Indian Rupee was trading at 67.79 per dollar.

STRATEGY:  Buy  Nifty Future above 8200  for the target of 8250 -8300 with the stop loss of 8130.

NIFTY FUTURE:  Nifty was down 14 points and closed at 8,139. It opened at 8,178.20 points, hitting a high of 8,178.70 and low of 8,127.45. It was a complete choppy session, as market was seen grinding in a narrow 25 points trading range especially in the second half. Nifty was unable to surpass the crucial 200-DMA which is now placed at 8221. In addition, Nifty also breached below the 8150 support zone for the first time this week after managing to hold on throughout the week. A close below the support zone indicates that further weakness is likely on the cards. Any kind of recovery will once again find stiff resistance at the 200-DMA of 8221 and its immediate previous peak of 8250. The India VIX (Volatility) index was down 2.57% at 15.25. The BSE Midcap closed at 12236.5 and Smallcap indices closed at 12113.5, both closing marginally down. The Indian Rupee was trading at 67.79 per dollar.

STRATEGY:  Buy  Nifty Future above 8200  for the target of 8250 -8300 with the stop loss of 8130.

 

SECTORAL INDICES

  CORPORATE NEWS

Dilip Buildcon shares soared after the company secured a road development project in Andhra Pradesh. The project comprises of the rehabilitation and upgradation to two-lane with paved shoulder of Machilipatnam to Avanigadda section in AP. The cost of the project is worth Rs. 260.1 Cr. Shares closed up 5%.

Aurobindo Pharma was named in a lawsuit alleging that it colluded with other drug makers to fix prices of commonly used drugs in the United States. The stock fell as much as 4.3% in intraday trade.

Bharat Heavy Electricals Ltd (BHEL) bagged a major order for supply of 118 sets of IGBT-based traction converters for the 3 Phase 6,000 HP electric locomotives. The order is valued at Rs. 200 Cr.

ERL RESEARCH TEAM

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