By Rajesh Palviya
Nifty closed at 15860 with a acquire of 177 factors on a weekly foundation. On the weekly chart index has fashioned a bullish candle and remained restricted inside earlier week’s Excessive-Low vary indicating lack of energy on both facet. The index is transferring in a Increased Prime and Increased Backside formation on the weekly chart indicating constructive bias.
The chart sample means that if Nifty crosses and sustains above 15900 stage it might witness shopping for which might lead the index in direction of 16100-16300 ranges. Nevertheless, if index breaks beneath 15700 stage it might witness promoting which might take the index in direction of 15600-15500. Nifty is buying and selling above 20 and 50 day SMAs that are vital brief time period transferring averages, indicating constructive bias within the brief time period. Nifty is predicted to stay in an uptrend to sideways zone till it breaks 10600 on the draw back. For the week, we anticipate Nifty to commerce within the vary of 16300-15800 with a constructive bias.
The weekly energy indicator RSI and momentum oscillator Stochastic have each turned constructive and are above their respective reference strains indicating constructive bias
Nifty derivatives outlook
Nifty futures on Friday closed at 15888 on a constructive observe with value positive factors of 0.35% (in comparison with earlier day) and three.10% improve in open curiosity including 2.89Lac shares indicating Lengthy Construct Up. The sentiment indicator PC Ratio is presently buying and selling at 1.20 though above the median line however in a snug zone indicating a constructive bias available in the market. In Nifty the excessive OI on the CALL facet within the weekly expiry scheduled 01st July is at 16,000(31.90L), 16,200(25L) & 16,500(26.88L), with 16,000 appearing as an vital resistance stage whereby there was writing of 11.52Lac shares adopted by 16400. The excessive OI on the PUT facet is at 15,700(24.44L) -15,800(24.28L) & 15,600(18.70L) strike, with 15,800 & 15,700 appearing as a robust assist stage as there was of writing of 11.25Lac & 8Lac shares respectively. So essentially the most possible vary indicated is 15700-15500 on the decrease facet and on the upside its 16000-16200.
Financial institution Nifty outlook
Financial institution Nifty closed at 35365 with a acquire of 807 factors on a weekly foundation. On the weekly chart the index has fashioned an extended bullish candle forming increased Excessive-Low in comparison with earlier week and has closed above earlier week’s excessive indicating constructive bias. Since previous 3-5 weeks, index has been consolidating inside 35800-34000 ranges indicating brief time period consolidation. Therefore any both facet breakouts will point out additional route.
The chart sample means that if Financial institution Nifty crosses and sustains above 35500 ranges it might witness shopping for which might lead the index in direction of 36000-37200 ranges. Nevertheless if index breaks beneath 34900 stage it might witness promoting which might take the index in direction of 34400-34000. Financial institution Nifty is buying and selling above 20, 50 and 100 day SMAs which is a crucial brief time period transferring common, indicating constructive bias within the brief time period. Financial institution Nifty continues to stay in an uptrend within the medium time period, so shopping for on dips continues to be our most popular technique. For the week, we anticipate Financial institution Nifty to commerce within the vary of 37000-34500 with a constructive bias.
The weekly energy indicator RSI and momentum oscillator Stochastic have each turned constructive and are above their respective reference strains indicating constructive bias.
Financial institution Nifty derivatives outlook
Financial institution Nifty futures on Friday closed at 35364 on a constructive observe with value positive factors of 1.50% (in comparison with earlier day) and 4.60% improve in open curiosity including 0.85Lac shares indicating Lengthy Construct Up. In Financial institution Nifty the excessive OI on the CALL facet within the weekly expiry scheduled 01st July is at 35,500(9.37L), 36,000(9.11L) & 37,000(8.24L), with 36,000 & 36,500 appearing as a robust resistance whereby there was writing of 5.91Lac & 3.47Lac shares in OI respectively. The excessive OI on the PUT facet is at 35,000(11.14L), 34,500(8.12L) & 34,000(7.14L) strikes, with 35,000 & 35,200 appearing as a robust assist stage adopted by 34,500 ranges as there was of writing of 8.15Lac & 3.38Lac shares respectively. The pivotal stage for the Financial institution nifty is at 35,500 as each on the decision facet in addition to on the put facet there was addition of 4.31Lac & 3.42Lac shares in OI respectively; whereas the tentative vary for the present weekly expiry is prone to be between 34,000-34,500 to 36,000-36,500.
Sector and shares in focus this week
We anticipate the IT, Capital items, Chemical, Metallic and Banking sectors can do effectively within the close to time period. One can deal with shares like TCS, Infosys, Maruti Suzuki India, HDFC Life Insurance coverage Firm, Nationwide Aluminium, Tata Steel, Cummins India, Glenmark Pharmaceuticals and Marico can do effectively in close to time period . From the Midcap area, one can deal with shares like Skipper, Andhra Sugars, Sterling and Wilson Solar, GoodYear India, D-Link India, Nocil .
(Rajesh Palviya is Vice President– Analysis (Head Technical & Derivatives) at Axis Securities Restricted. The views expressed are the writer’s personal. Please seek the advice of your monetary advisor earlier than investing.)