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Weekly Technical Roundup MAY’ 07, 2018

Market Commentary Sector Wise Performance

INDEX Latest (in RS) Week (%)

NIFTY BANK 25645.4 0.99

INDIA VIX 13.25 10.26

NFTY COMMODITIES 3731.25 -2.59

NIFTY AUTO 11323.7 -2.23

NIFTY CONSUMPTION 4971.95 -1.46

NIFTY ENERGY 13643.25 -2.76

NIFTY FMCG 28177.95 -0.90

NIFTY INFRA 3424.6 -1.34

NIFTY IT 13453.3 -2.48

NIFTY MEDIA 3316.7 -1.17

NIFTY METAL 3633.6 -3.46

NIFTY PHARMA 8817.45 -1.89

NIFTY PSU BANK 2784.4 -1.08

NIFTY REALTY 310.1 -2.25

In the previous week, Sensex opened the week at 35021, traded in a range 35357 to 34847 and closed the week at 34915. Thus, it closed the week with a loss of 54 points. On the other hand, the Nifty opened the week at 10705, traded in a range 10784 to 10601 and closed the week at 10618. Thus the Nifty closed the week with a loss of 74 points.

In May Series, Maximum OI was seen in Nifty 11000CE, 57.92Lks shares followed by 10800ce, 38.04Lks shares whereas 10500PE has maximum OI 48.08lks shares followed by 10400 PE, 41.03 lks shares. In Nifty Bank maximum OI was seen in 25000 PE and 26000 CE.

VIX is at 13.2500, if it sustains above 14, midcap stocks may more correction

PCR is at 1.50 which is slightly over bought situation but still has some rooms to go up to 1.60-1.65.

Result ahead next week-INTELLECT,DWARKESH,EXIDE, FSL ICICBANK TATACHEM TATACOFFEE TIDENT VIJAYABANK ABB GODREJCP JUBILANT FOOD MHRIL SPARC SINTEX ARVIND EICHER MOT EIDPARRY GMDCLTD FEDBANK JINDALSTEL JUBILANT ORIENTBANK CHAMBLFERT CHENNPETRO INDIANB MPHASIS NESTLE PTL TATACOMM QUICKHEAL TATACOMM TITAN UNIONBANK ALBK ZEEL CANBK GILLETTE HAVELLS NDTV OFSS PURVA RAIN SPICEJET.

A strong rally on Friday trimmed the weekly loss in the Dow Jones Industrial Average. It has declined just 48 points and has ended at 24,262 levels

Asia markets turned in a subdued performance, with major indexes closing in negative territory, as investors watched how U.S.-China trade talks progressed on Friday. The Shanghai Composite edged down 0.32 percent to 3,091.03. The Hang Seng Index declined 1.06 percent. European shares closed higher Friday as investors monitored trade talks between the U.S. and China and digested key economic data.

Investors will be awaiting updates on U.S. producer price and consumer price inflation on Wednesday and Thursday, respectively, hoping for fresh insight on how how quickly interest rates may rise this year.

Oil prices have risen 15% since the beginning of 2018. Brent crude 74.96 $ per barrel.

TOP WEEKLY GAINERS TOP WEEKLY LOSERS

Kotakbank Hcltech

Hdfcbank Eicher Motors

Hdfc Upl

Adaniport Coalindia

Tcs Ibulhsgfin

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Weekly Technical Roundup MAY’ 07, 2018

Nifty Weekly Outlook

Outlook: Nifty is expected to take a start the week with range 10590 to 10690; resistance 10730and 10790. Support 10500.

After five weeks continuous uptrend nifty has made a bearish dark cloud cover on weekly chart. Nifty has been retraced 61.8% of the fall.

Sustaining above 10790 would indicate further uptrend towards 10850 and 11000.

Below 10590, the correction may be deepened and it may test 10500. The corrective downfall is expected to get bottomed out around 10440-480.

50 SMA at 10380 and 200 SMA around 10280 should be kept in view.

Medium term trend would remain bullish as long as 10100-10200 support zone is not breached.

Conclusively, weekly range would be 10440 to 10730.

Nifty Chart (Weekly): High 10785

Low 10602

Resistance Levels

- R1 10790

- R2 10850

- R3 10950

-R4 11000

Support Levels

- S1 10590

- S2 10500

- S3 10440

-S4 10380

NIFTY - BANK Outlook

Outlook: Nifty Bank is expected to start the week with the range 25350 to 25750. Resistance 25820and 26100 Support 25000.

Nifty Bank again closed positive as a confirmation to previous hammer type candle on weekly chart. Nifty bank has been retraced 50% of the fall and now it needs to move above the previous peak around 25730 to 25820for further up move. 61.8% retracement level around 26100 would be the next resistance. Immediate support is around 26350 and any closing below this level would only trigger the possibility of a short term correction. 200 SMA around 25000 and 50 SMA around 24800 would act as other support levels in case of any down trend. Medium term trend is expected to remain unaltered as long as 50 weeks moving average around 24780 is not breached decisively.

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Weekly Technical Roundup MAY’ 07, 2018

Bank Nifty Chart (Daily):

High 25716

Low 24465

Resistance Levels

- R1 25750

- R2 25820

- R3 25950

- R4 26100

Support Levels

- S1 25350

- S2 25000

- S3 24800

- S3 24700

NIFTY Midcap (19906)

Nifty MIDCAP (19720) after continuous five weeks positive closing has matched the previous peak around 20331 and create a strong bearish engulfing candle on weekly chart. Immediate support seems at 19500 and 50 SMS at 19420. Any up move above 19750 would be restricted by resistance at 19850 and 20000. Above 20331 there would be a breakout for upside movement towards 20900 and 21300. Medium term trend is expected to remain un altered as long as 19100-19200 support range is not breached. Conclusively- short term trend is expected to remain down side as long as the breakout not happened

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Weekly Technical Roundup MAY’ 07, 2018

Stock Picks

M&M (855)

M&M has a distribution pattern and a breakdown is expected below 850. Immediate support seems at 834 and the target of the pattern may be 822. A stop loss of 860 should be maintained on closing basis. Petronet (219.50)

PETRONET is trading in a descending channel with lower line near current price and a long tailed hammer with positive divergence indicates bullish reversal. A stoploss of 213 should be kept for target 234 and 242in near term,

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Weekly Technical Roundup MAY’ 07, 2018

Source: Sumpoorna Research, NSE, BSE, SEBI,

and other publically available documents.

Document prepared by:

Nitesh Aggarwala & Sunil Koul

For further information, please

contact: Sumpoorna Global Markets &

Economics Research

Phone: +91 120 4505200

email:

globalresearch@sumpoorna.com

url: www.sumpoornaonline.com

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