In the week ending March 8, we were of the view that if Nifty crosses 11,090 then it would shift the base of trading from 10,550 to 10,850 and it would extend targets from 11,200 to 11,400.
Well, market did exactly the same in the previous week and managed to close at 11,426 on a weekly basis. Bank Nifty had surprised everyone by closing almost 1,000 points higher than the highest high of 28,390 level.
However, it happens whenever foreign investors participate actively in the market. Since the last two years, foreign investors were either sellers or silent but in last 10-12 days, they pumped more than Rs 25,000 crores, which is a record-breaking investment in a very short time frame.
On the contrary, in October 2018, Indian equities witnessed record-breaking outflow from FIIs which pulled the market from 11,000 to 10,000 levels, which was nearly 1,000 points fall from the highest of the month.
In both cases, Indian rupee responded to the direction of FIIs movement.
However, active response from RBI has changed the sentiment. In the long run, current FII investments are certainly healthy for the market.
Most of the time while investing they follow the approach of top-down in any country. It shows that macros and micros are going to improve in the long run.
For the current week, technically, we feel that the markets have approached extreme levels in the short term, and some consolidation could be seen.
As per options data and India Volatility Index (VIX), the market should come under a quick drop to 11,320-11,290. However, it would remain the last opportunity for positional traders to cover up their short sell positions, which they have created at earlier resistance (11,100 levels).
Any fall beyond 11,300 would be a fresh buying opportunity in the market. Ultimate supports exist at 11,150 and 11,000, which was earlier resistance zone for the market.
On the higher side, chances of hitting 11,600-11,650 are bright in the next few weeks. Resistance exists at 11,490 and 11,550.
In brief, Nifty is poised to hit the level of 11,600-11,650; however, prior to that, we can expect a minor decline to 11,320-11290 levels.
On Monday, in case Nifty fails to cross 11,490 then it would result in a gradual decline to 11,320 levels. Bank Nifty should arrest at 29,650 in the near term. Support levels exists at 29,000-29,800.
If Nifty fails to cross 11,490, take a contra bet of selling short around 11,465-11,475. For that keep a final stop loss at 11,510.
We provide you sure shot Commodity & Equity Market Tips, Intraday tips, share market tips, Mcx bullion tips, Mcx tips, Crude tips, Stock tips, Future and Cash tips with Technical & Fundamental Research.
Visit: www.ripplesadvisory.com
Contact us @ +91-9644405056
Source: Moneycontrol
No comments:
Post a Comment