Business Standard

Bias to remain positive

Related News

Markets recorded significant gains in the week ended Friday on hope the Reserve Bank of India (RBI) would cut rates in the coming on June 18. From an early week low of 15,749, the rallied to a high of 16,768, before ending at 16,719, a significant gain of 4.7 per cent. In the process, it also reversed its three-week losing streak.

Going ahead, markets are likely to remain fairly volatile, owing to global uncertainties and the coming policy review.

All the 30 stocks in the Sensex ended the week with gains. Larsen & Toubro was the major gainer, up about 15 per cent at Rs 1,309. Sterlite, Hero MotoCorp, HDFC Bank, NTPC, DLF, SBI and BHEL were the other major gainers, with gains of seven-10 per cent.

According to the monthly Fibonacci charts, the Sensex seems headed towards its monthly resistance levels of 16,840 and 16,725. The monthly bias is likely to remain positive, as long as the index remains above 16,218. The quarterly also reaffirm the fact that the bias may remain positive, as long as the index remains above 16,200. Failure on this front could result in fresh weakness, with a downside target of 15,450.

Next week, the Sensex may face resistance at 17,100-17,350, while it may seek support at 16,330-16,090.

The National Stock Exchange Nifty moved in a range of 314 points. From a low of 4,770, it surged to a high of 5,084, before settling at 5,068, a gain of 4.7 per cent. It managed to take support around its long-term (200-WMA), before bouncing back strongly. The overall trend appears to be neutral in the short term, and bullish in the medium term.

At the same time, the daily momentum oscillators are in favour of the bulls. According to the daily charts, the bias is likely to remain positive, as long as the Nifty sustains above the 5,000 mark. The move upwards would gain fresh momentum once the index stabilises at above 5,090.

However, on the flip side, the monthly momentum oscillators look a wee bit tired, making the current move upward susceptible in the medium term. The monthly charts indicate considerable resistance for the Nifty at around 5,110 and 5,230.

Read more on:   
|
|
|
|
|
|
|
|

Read More

Nifty may face hurdle around 5,240

The markets moved in a fairly narrow band in the week under review. The BSE benchmark index touched a high of 17,110 and a low of 16,636 on the first ...

Quick Links

 

Market News

Mentha oil up 0.5% on rising demand

Oil for delivery in current month is up by 0.40%

Palm oil up 0.3% on spot demand

Oil for delivery in November edged up by 0.32%

Silver futures fall 0.29% on weak global cues

Speculators reduced positions on weak cues from global markets

Cardamom up 0.6% on strong demand

Spice for delivery in December traded higher by 0.20%

Stocks to buy in Samvat 2071

Here are a few stock recommendations for Samvat 2071 by leading brokerage and research houses

Back to Top