| |
| The breadth was marginally bearish as falling counters outnumbered the gainers by approximately 10 per cent.
|
| |
| Traded volumes were above the 10-day average volumes. F&O volumes, too, were higher than the 10-day average.
|
| |
| The drivers for the markets on Friday were pharmaceuticals and oil & gas stocks.
|
| |
| As I had predicted earlier, there is a resource shift in progress as sectoral preferences are undergoing a change. The technology sector is still a dark horse and has the steam to propel the markets higher.
|
| |
| The Nifty is experiencing selling pressure at 1360 levels, which it must surpass with convincing volumes and a very positive market breadth.
|
| |
| The commensurate levels on the Sensex are 4260-4270. The next major resistance is at 1380-1390 on the Nifty and the 4320-4330 on the Sensex.
|
| |
| On the lower side expect support at 1324 and 4210 on the Nifty and the Sensex, respectively, in the immediate future. The indices are now trading 6 per cent above their 13-day SMAs and the oscillators are in the overbought zone for an extended period of time. That makes the possibility of a corrective fall slightly greater.
|
| |
| The outlook for the trading session on Monday is that of continued optimism as the new derivative cycle combined with a new week may see follow up support at lower levels.
|
| |
| Sectoral polarisation will be seen on the oil PSUs and pharmaceuticals front.
|
| |
| Cement stocks are showing signs of bottoming out in the absolute short term and may see a relief rally in the coming week. Among stocks, Reliance is showing tremendous relative strength and is showing promise on the short-term charts.
|
| |
| The next inflection point will be Rs 414 and a minor resistance will be seen along the road at Rs 409 levels. Buying is recommended for short term traders in the cash and derivatives segment via the September futures.
|
| |
| ITC is showing signs of a fresh upmove as the short-term resistance at Rs 826 has been surpassed on a closing basis.
|
| |
| As long as the stock remains above Rs 820 levels, expect the scrip to make higher tops and possibly test Rs 850 levels in the near term. Buy in the cash and derivatives segment.
|
| |
| Vijay Bhambwani
|
| |
| CEO, BSPLindia.com
|
| |
| The author is a Mumbai-based investment consultant and invites feedback at vijay@bsplindia.com.
|
| |
| Sebi disclosure: The author has no exposure in any securities mentioned above. |
| |
