Equity Research Report Ways2Capital 11 Dec 2018
Added: (Tue Dec 11 2018)
Pressbox (Press Release) -
Fundamentals:
Last week our Indian Equity market opened on negative note and remained bearish throughout the week. The December series kick-started on a volatile note with Nifty making swing high of 10,974 and a swing low of 10,611 to end the week with a loss of 1.4 percent. The IT sector outperformed while huge selling was seen in the pharma sector (mainly Sun Pharma), auto, metals, and energy with a price cut of 2.5 to 6 percent. Private sector banks saw some buying coming in the last trading session. The Nifty rebounded for the first time in last four consecutive sessions and settled the trade near 10,700 levels on Friday, tracking recovery in global peers. But traders remained cautious ahead of actual results of five state elections which is due on 11 Dec 2018. Along with global events and macro factors, from last one month or so, all eyes have been on one key event which is state elections results, the widely considered as semi-final before general elections 2019. In five states, Madhya Pradesh, Rajasthan and Chhattisgarh are key ones for both national parties BJP and Congress ahead of Lok Sabha elections. A neck-and-neck contest between ruling BJP and the main opposition party Congress could spell trouble for markets
echnical outlook:
Nifty:
Last week nifty index started on negative note on Monday and remained bearish throughout the week except Friday's trading session where index showed some positive movement. The market snapped a three-day losing streak amid volatility on December 7, with the Nifty closing near 10,700 levels amid caution ahead of the assembly elections results of five states scheduled to be announced on December 11. The Nifty closed 200 points lower at 10,693.70 with loss of 1.7 percent on weekly basis. The index formed a bullish candle which resembles an 'Inside Bar' kind of pattern on the daily charts and bearish candle on the weekly chart. Nifty registered a decisive break down below its 200-day moving average with a gap down on Thursday. Index shall remain under pressure unless it closes above 10,748 levels and weakness shall get extended on breach of 10,588 levels. On the option front, maximum Put OI is seen at 10,000, followed by 10,200 strikes. Maximum Call OI is seen at 11,000 strikes.
For this week, traders can adopt sell on higher level strategy in it and below the level of 10,490. It can test the level of Rs. 10,390 during the week. Trades can make sell position in it by maintaining a Stop Loss of Rs. 10,580.
Bank Nifty:
The Nifty Bank index started the last week on negative note on Monday and extended its negative run in most of the trading session in the week but on Friday's Session Bank Nifty erased previous day's losses and witnessed buying interest for the most part of the trading session. It has also negated its formation of lower highs-lower lows and rallied more than 400 points intraday. The Bank Nifty ended the week at 26,660 with overall loss of 1.11% . The index has formed a 'Bullish Belt Hold' on daily scale while Hanging man candlestick pattern on weekly chart . Now if it traded below 26,180 than further down side movement can be seen in it while upside resistance is placed at 26,455 and 26,660.
For this week, traders can adopt sell on higher level strategy in it and below the level of 26,180. It can test the level of Rs. 25,800 during the week. Trades can make sell position in it by maintaining a Stop Loss of Rs. 26,501.
SCL NSE CASH:
Overall trend of the Stock is sideways for long term . For short term stock is in consolidation phase. Last week, it started on positive note and traded with sideways movement throughout the week. On daily chart stock has showed good buying from lower levels. It has gave breakout of its trend line on daily chart. If it manages to trade above the levels of 530 than further upside move can be seen in it.
For this week, traders can adopt buy on lower level strategy in it and above the level of 530 it can test the level of Rs. 548 during the week. Trades can make buy position in it by maintaining a Stop Loss of Rs. 517.
TVSMOTORS NSE CASH:
Overall trend of the Stock is bullish for long term . For short term stock is in consolidation phase. Last week stock started on negative note and showed good buying from lower levels throughout the week. On daily chart it is consolidation on lower levels . If it manages to trade above 555 levels than further upside move can be seen in it. In intraday it showed a good positive move.
For this week, traders can adopt buy on lower level strategy in it and above the level of 555 it can test the level of Rs. 569 during the week. Trades can make buy position in it by maintaining a Stop Loss of Rs. 543.
Last week, IBULHSGFIN Dec Futures started the week on positive note but till the end of the week, all of its earlier gains were erased and it closed at 720.40 with the overall loss of 0.40% on weekly basis. Technically it’s near the 52 week low and made Symmetrical Triangle Pattern from the oversold zone and for this week; we can expect downside movement in it.
For this week, traders can adopt selling from trend line breakout strategy in it and below the level of 680 it can test the level of 660.20 during the week. Trades can make buy position in it by maintaining a Stop Loss of 692.50
Correction : Last week, IBULHSGFIN Dec Futures started the week on positive note but till the end of the week, all of its earlier gains were erased and it closed at 720.40 with the overall loss of 0.40% on weekly basis. Technically it’s near the 52 week low and made Symmetrical Triangle Pattern from the oversold zone and for this week; we can expect downside movement in it.
For this week, traders can adopt selling from trend line breakout strategy in it and below the level of 680 it can test the level of 660.20 during the week. Trades can make sell position in it by maintaining a Stop Loss of 692.50
Last week, TATAELXSI Dec Futures started the week on positive note but in last two days of the week, all the gain were erased and it closed at 1011.75 with the overall loss of 1.40% on weekly basis. Technically it’s consolidating from last one month and trading below the 200 moving average and for this week, we can expect downside movement in it.
For this week, traders can adopt selling on the basis of consolidation breakout strategy in it and below the level of 980 it can test the level of 953.20 during the week. Trades can make sell position in it by maintaining a Stop Loss of 1000.20
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