The week that was.
The week was marked by decent gain on the charts but the important development was the levels touched by the S&P Nifty in absolute terms. This week has made strong pitch for the market to attempt out of the range 5100-5400 and set the stage for next phase of bull run. The quarterly results of the companies were encouraging with industry giants irrespective of sectors performing better than the expectation of the market.
It seemed that the breakout by the Nifty out of the range is unlikely in current scenario but the market demonstrated resilience in weak global conditions. The strength was visible on days of positive global cues coming from the European indices. The “better than expected” performance by the Wall Street listed companies brought cheers on the indexes around the world. The Wall Street discounted every negative flow of news and announcement and looked poised for gains.
The stellar performance by giants like HDFC & TCS form different sectors provided strength to these counters as well as sectorial indexes, as results by industry majors is taken as guidance by the market for the particular sector.
The developments were encouraging for the market and Nifty closed with some weight added in the last two sessions after a tepid movement in the benchmark.
What’s ahead?
This would be an important week for the market in terms of the major announcements which could be expected. The week would be witnessing the expiry, in recent times is accompanied with highly volatile sessions. The upwards breakout in the market could be susceptible to some profit booking taking place near the expiry. Also the major policy rate announcement is timed to come on 27th July. The market is expecting a 25 basis points increase in the key rates, which would be adjusted by the indexes before the date. The rate sensitive sectors such as auto, banks and real estate would be on the radar in case the announcement contains some surprising elements in it. The apex bank is also expected to provide assessment of inflationary trends and economic growth forecast.
The chart of Nifty index is looking strong with a support near the short term moving average (20-EMA) which is continuing with the ascending trend. The current 5358 would be acting as a strong support in case of an impending correction before expiry. The medium term moving average (50-EMA) will be the next level of support in case the market goes for a dip in case of an unexpected development.
The technical picture of the S&P Nifty is currently witnessing the bullish side of the market in recent times. The technical charting shows that the ADX has bottomed up even at high levels, thus reversing the previous trend with high trending support. The current reading of ADX is near the 48 level which suggest the presence of a strong trend in the benchmark. This could be the final stage of the surge in case the ADX tops out in immediate time to come. This could bring some correction only with this development on the charts as high value of ADX indicator is not sustainable for a longer time. The +DI & -DI are periodic in nature, considering the fact the bulls are currently on a higher ground which could continue for the time to come. The MACD indicator is also giving some bullish signal for the immediate future, with the MACD line crossing over the Signal line, a positive indication. The MACD Histogram is also floating in the positive territory which on a short time frame is a periodic indicator. The histogram if continues to make higher tops will be a buying signal for the indices.
The Slow Stochastic momentum indicator is also bouncing back from the near 50 levels. As suggested in our newsletter, a possible inflection would be providing the momentum required for the market to attempt for a higher level. Thus the %K line along with the %D line has bottomed up near the mid-level, providing impetus to the market for the current surge.
The movement in the markets this week would be defined by the policy announcement by Central bank, quarterly results and the world markets. The interrelation of the markets would be on a higher level in times to come and ripples of a possible major development will be reflected around the world. We expect Nifty to trade on the range of 5485-5385.
TEAM SLT
The week was marked by decent gain on the charts but the important development was the levels touched by the S&P Nifty in absolute terms. This week has made strong pitch for the market to attempt out of the range 5100-5400 and set the stage for next phase of bull run. The quarterly results of the companies were encouraging with industry giants irrespective of sectors performing better than the expectation of the market.
It seemed that the breakout by the Nifty out of the range is unlikely in current scenario but the market demonstrated resilience in weak global conditions. The strength was visible on days of positive global cues coming from the European indices. The “better than expected” performance by the Wall Street listed companies brought cheers on the indexes around the world. The Wall Street discounted every negative flow of news and announcement and looked poised for gains.
The stellar performance by giants like HDFC & TCS form different sectors provided strength to these counters as well as sectorial indexes, as results by industry majors is taken as guidance by the market for the particular sector.
The developments were encouraging for the market and Nifty closed with some weight added in the last two sessions after a tepid movement in the benchmark.
What’s ahead?
This would be an important week for the market in terms of the major announcements which could be expected. The week would be witnessing the expiry, in recent times is accompanied with highly volatile sessions. The upwards breakout in the market could be susceptible to some profit booking taking place near the expiry. Also the major policy rate announcement is timed to come on 27th July. The market is expecting a 25 basis points increase in the key rates, which would be adjusted by the indexes before the date. The rate sensitive sectors such as auto, banks and real estate would be on the radar in case the announcement contains some surprising elements in it. The apex bank is also expected to provide assessment of inflationary trends and economic growth forecast.
The chart of Nifty index is looking strong with a support near the short term moving average (20-EMA) which is continuing with the ascending trend. The current 5358 would be acting as a strong support in case of an impending correction before expiry. The medium term moving average (50-EMA) will be the next level of support in case the market goes for a dip in case of an unexpected development.
The technical picture of the S&P Nifty is currently witnessing the bullish side of the market in recent times. The technical charting shows that the ADX has bottomed up even at high levels, thus reversing the previous trend with high trending support. The current reading of ADX is near the 48 level which suggest the presence of a strong trend in the benchmark. This could be the final stage of the surge in case the ADX tops out in immediate time to come. This could bring some correction only with this development on the charts as high value of ADX indicator is not sustainable for a longer time. The +DI & -DI are periodic in nature, considering the fact the bulls are currently on a higher ground which could continue for the time to come. The MACD indicator is also giving some bullish signal for the immediate future, with the MACD line crossing over the Signal line, a positive indication. The MACD Histogram is also floating in the positive territory which on a short time frame is a periodic indicator. The histogram if continues to make higher tops will be a buying signal for the indices.
The Slow Stochastic momentum indicator is also bouncing back from the near 50 levels. As suggested in our newsletter, a possible inflection would be providing the momentum required for the market to attempt for a higher level. Thus the %K line along with the %D line has bottomed up near the mid-level, providing impetus to the market for the current surge.
The movement in the markets this week would be defined by the policy announcement by Central bank, quarterly results and the world markets. The interrelation of the markets would be on a higher level in times to come and ripples of a possible major development will be reflected around the world. We expect Nifty to trade on the range of 5485-5385.
TEAM SLT
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