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Replete Weekly-Indian Equity Market Review

Indian Equity Market Lose Their Winning Streak

 

Current Outlook:

– A market environment conducive for new purchases, but remain selective.

– Focus on fundamentally strong stocks breaking out of strong technical patterns.

– Stay disciplined and exercise sound buy and sell rules

Highlights:

Two up days, Three down days

Weekly Market Review

Benchmark indices lost their two-week winning streak as markets observed a topsy-turvy trading during the entire week. On Monday, indices traded flat followed by some heavy sell-off on Tuesday and Wednesday. On Thursday, the Nifty managed to post gains, for the first time, in this week but on lower trading volume. Today, a very volatile trading session was observed. However, during the last hour of the trading session, key indices made some recovery on the news of GST rate cut for over 175 items, thus ending the day in green.

The Nifty started the week at 10,431.75 and traded in the range of 10,254.10-10,490.45. The index closed for the week at 10,321.75, down 1.25% from last week’s close. After opening at 33,710.15, the Sensex lost 1.10% this week to settle at 33,314.56. The index traded in the range of 33,108.09-33,865.95.

Broader indices also displayed some weakness as the Nifty Midcap and the Smallcap indices both lost 0.77% and 1.59%, respectively.

Barring three sectors, all indices ended in red this week. For the week, Nifty IT, PSU bank, and FMCG were the only gainers with gains of 3.54%, 0.66%, and 0.50%, respectively. On the downside, Nifty Pharma, Energy, and Realty were the top losers with loses of 5.92%, 4.49%, and 2.65%, respectively.

The following data released could turn out to be a market mover in the next week:

-Cumulative Industrial Production, manufacturing output and CPI data to be released on November 13, 2017.

-WPI food, WPI fuel, WPI inflation, and WPI manufacturing inflation data to be released on November 14, 2017.

This week, the Nifty gained one distribution day; thus, taking the distribution day count to three on the Nifty, while the Sensex gained two distribution day this week taking the count to two. The Indian Market remains in the confirmed uptrend.

Leaders Up on Volume: Indian Bank (+20.67%),Vaibhav Global (+9.93%), Skipper (+8.32%)

Leaders Down on Volume: National Peroxide (-16.07%), Gujarat Ambuja Exports (-13.28%), 8k Miles Software Ser. (-11.44%)

*source-MarketSmith India

Technical summary for coming week:-

NSENIFTY

NSE NIFTY:-

Our first short-term target in NIFTY is already achieved at 10450. As per Elliot wave theory, 3rd wave of miner term is already completed now projected target for a 4th wave   is 10176.17 than our target might be 10674 & 10935. So our advise you can hold your long with a stop loss of 10120. And enjoy the ride.

NSE NIFTY is long-term Bullish as the 144 days moving average of 8,634.15 is increasing. The Relative Strength Index is at 65.41 in the neutral territory. The Relative Momentum Index is at 88.67 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 606.47, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 87.09. This value is in the overbought territory.

Weekly Pivot Point Resistance and Support

The first weekly resistance level is at 10,501.48 while the second resistance level at 10,550.47. The first weekly support level is at 10,363.73 while the second support level is at 10,274.97.

BANKNIFTY

BANKNIFTY:-

BANKNIFTY is also in a uptrend. for short term it may go down till 25120 & 24520 but overall trend is positive.

BANKNIFTY is long term Bullish as the 144 days moving average of 19,668.51 is increasing. The Relative Strength Index is at 66.22 in the neutral territory. The Relative Momentum Index is at 83.83 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 1,718.10, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 67.58. This value is in the neutral territory.

Weekly Pivot Point Resistance and Support

The first weekly resistance level is at 25,961.28 while the second resistance level at 26,271.87. The first weekly support level is at 25,074.33 while the second support level is at 24,497.97.

Stocks for your medium to long term portfolio:-

PCJEWELLER

PCJEWELLER, CMP=377.05

PC Jeweller Limited is a jewellery company. The Company is engaged in the business of manufacture, retail and export of jewellery. It offers a range of products including 100% hallmarked gold jewellery, certified diamond jewellery and other jewellery, including silver articles, with a focus on diamond jewellery and jewellery for weddings. It sells jewellery through its online sale portal www.wearyourshine.com. Its jewellery category includes rings; earrings; pendants; mangalsutras; chains and necklaces; bangles and bracelets, and nose pins. It also offers platinum, gemstone, men’s and kids jewellery. It offers jewelry under various brands, including PC Jeweller, blue Nile, PNG Jewellers, Waman Hari Pethe, Asmi, Gili, sangini, nirvana, Nakshatra, Kama Jewellery, flexia Jewellery, Sparkles, Candere, Diaashi Diamonds, Demira, Augrav, Urnish Jewellers, D’amor, Avsar, Ornomart, Dishi Somani, Charu Jewels, Jewels Forum, Aakanksha Rustagi, Prernaa Makhariaa, Aakarshan Jewellery, Monica Kapur and Vipin Rohilla.

The company has excellent quality, Financial Trend positive, Good price Strength, buyers demand is also looking good. The company is going to post its quarterly result on 13th November. we expect a good result and keeping it on our watchlist. if it manages to deliver the quarterly result as per expectations than it might be a good script for your portfolio.

Technically it is looking very strong and we expect 475 & 754.74 targets in coming future.

PCJEWELLER is long-term Bullish as the 144 days moving average of 302.93 is increasing. The Relative Strength Index is at 58.34 in the neutral territory. The Relative Momentum Index is at 58.40 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at 8.97, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 42.31. This value is in the neutral territory.

DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading.

About Sachin Siwal

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