Equity Research Report 14 November 2016 Ways2Capital.pdf
TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )
NIFTY FIFTY : - The
Equity benchmark Nifty 50 open in a Positive note on Monday up by
100 points or 1.17 per cent at 8533. Last week Indian benchmark Index Nifty fell 2.10
Percent. The Index opened at 8639 and closed at 8458 after making a low of 8425.
Selling pressure was due to uncertainty over the potential outcome of U.S. Presidential
election which kept investors nervous going into the weekend. Moreover the new GST
structure was not able to create any positive impact on the markets. The movement in this
week was greatly affected by the US Presidential Election. Indian benchmark Index
witnessed a roller coaster ride on Wednesday, as Nifty opened gap down on twin news of
Trump victory and Indian government's decision to ban Rs.500 and Rs.1000 notes. Sharp
buying was witnessed after a gap down opening. Market made a low of 8076 before
recovering sharply. Nifty made fresh intra day highs boosted by the broader markets and
banking stocks, discounting all negativities of a Trump victory and the Indian currency
apprehensions. FII data which came in after markets hours saw a selling of Rs.2100 cr
even though they were buyers in F&O segment. The markets are showing strength at
lower levels but will have to sustain this week above 8550 for the next target of 8800 to
be achieved. The main concern may be EM meltdown in currencies and continuous
devaluation of China Yuan for the Market for next week. The Nifty is expected to trade in
the range of 8485-8645 levels. The Significance levels for Nifty is 8444-8578 Upside and
8360-8320 is down side.
BANK NIFTY : -
The Bank Nifty open in a positive note on Monday up by 259 points or
1.34 per cent at 19317. The Banking Sector stocks trade in a positive notes in this week.
Demonetisation of Rs. 500 and Rs. 1000 notes boosted banking stocks since lenders
expect huge cash deposits from people affected by the Modi government's surprise move.
Bank stocks may be in focus for next week trading sessions after good run as RBI
announced some SA4 restructuring measures, which may be positive for banks, but may
also be largely discounted considering the time & price action. Bank Nifty may open
around 20120 area for next week, has to sustain above 20060 zone. otherwise it may
further fall towards 19850-19400 zone for the next week. For any strength after huge gap
down opening, Bank Nifty has to sustain above 20160 area for 20280-20350 zone in the
event of a clear US election results. The Bank Nifty is Expected to trade in the range of
19720-20891. The Significance levels for Bank Nifty is 20160-20451 is Upside and
19720-19571 is Down side.
Monday, 14 November 2016