16 DALAL STREET INVESTMENT JOURNAL I JULY 10 - 23 , 2017 DSIJ.in^
some more. Above the levels of 9700-
9710, the index may scale up to the level
of 9750, hence we maintain our view of
9930-9990 levels in the medium term.
However, in case of a turnaround and if
Nifty plunges below the 9480 level, the
level of 9340 may be tested.
All-in-all, a correction would be taken as
an opportunity to accumulate at lower
levels. A correction would give a better
push to a further upside rally, which is
expected to take Nifty to 10700-
levels. However, the FIIs and DIIs have
started pouring in yet again, and hence, we
may see a reversal from the current levels
itself. The focus point still remains the GST
implementation and how investors would
react to it on product/service specific front.
Favourable monsoon is another event that
would create demand and thereby boost
the markets.
market has attempted a pullback up to
the 9650 level, which is near to the
trendline level of 9660. Considering this,
we may see fresh buying emerging only
after 9630-9650 levels on the Nifty are
tested on a closing basis, while Nifty
would see a continuation in the positive
trend above the 9700-mark. For now, we
hold 9660-9700 as the immediate
resistances for the Nifty above 9630-
- On the downside, which is most
likely, we hold 9570-9550 level, followed
by 9525 as immediate supports, provided
Nifty falls below the 9600-mark.
Considering the weekly time frame, if the
low of level 9449 is not broken on a
closing basis, we can consider it as a
swing low and can await a bounceback in
the Nifty. The 14-period RSI has given a
positive reversal (though in the
overbought zone), which may lift Nifty
Technicals Equity
Short Covering Or Fresh Buying, That Is The Question
T
he bull-bear fight is still on in the
Indian markets which has resulted in
consolidation in the overbought zone
with high valuations. The month of June 2017
ended on a weaker note in the wake of F&O
expiry and cautiousness ahead of GST
implementation. Moreover, markets also took
weak global cues pertaining to fall in crude oil
prices despite production cut by OPEC.
Moreover, the Ransomware software attacks in
Europe majorly added to the negative
sentiments across the globe. However, some
short covering in the markets was seen in the
recent sessions, driven by positive
macroeconomic data. The Eight Core
Industries (ECI) figure in May 2017 grew 3.
per cent over the previous month. The fiscal
deficit target for May 2017 reached Rs 37.
lakh crore to 68.3% of the FY18 target, while
the eternal debt narrowed by 2.1 per cent to
USD 471.9 billion for March end 2017.
All-in-all, the sideways movement is still on
with daily volatility in the markets.
Considering the daily time frame, Nifty
gave an upward sloping trendline
breakdown at 9600, which was exactly the
breakdown of the 21-day EMA support
level also. In the recent three candles,
Roadmap for the next 15 trading sessions
Ideas Nifty Levels Action to be Initiated Probable Targets
Resistance for the medium term 9650-
Close above 9710, followed by 9750 on the
weekly chart, would give further momentum
to the bulls.
9930-
Support for the medium term 9535-
Close below 9600-9535 on the daily chart
would change the trend and trigger a retreat.
9480-
NIFTY Index Chart Analysis