Hot Stocks: Bulls hoping for a strong rally soon; strong support seen at 11,450 for Nifty
Episode 1837, Oct 29, 2019, 03:08 AM
11,450-11,350 can be seen as immediate supports and on the higher side, the rally could extend towards 11,850-11,900, and then beyond 12,000 once Nifty manages to sustain above 11,700.
The benchmark index, Nifty50, might be trading well above levels that were seen in the last Diwali, but the ground reality is not the same.
If we look at the way some of the stocks from the broader markets were hammered, most of them are now trading near multi-year lows or 52-week low.
Market participants had to undergo a lot of stress as we didn’t see any respite in the market. Finally, in the second half of September, our Finance Minister pulled off a masterstroke by slashing the corporate tax rate.
This certainly bolstered traders’/ investors’ sentiments, which was then reflected in a colossal rally of more than 8 percent in merely two days.
However, the pain is still not out of the system as we can see some indecisive swings thereafter. In the midst of all, the market is at the cusp of a very interesting junction.
In the week gone by, Nifty50 moved in a range of 150 – 180 points to close with a loss of 0.7 percent for the week ended October 25. As per our recent ‘Time Retracement’ analysis, Nifty has reversed exactly in the September month and is now well above recent lows.
But, the million-dollar question remains the same, are we going to see a sustained rally from hereon or not? Honestly, this would probably be the toughest question to answer.
But, we are still hopeful. We have seen bulls trying to flex their muscles a bit and hence, some good days could come for our markets.
On the daily chart, we can see a breakout happening last week from an ‘Inverse Head and Shoulders’ pattern. Although the follow-up move is lacking, and one should remain upbeat as long as the recent swing low of 11,090 is intact.
Meanwhile, 11,450-11,350 can be seen as immediate supports and on the higher side, the rally could extend towards 11,850-11,900, and then beyond 12,000 once Nifty manages to sustain above 11,700.
The Banking index has been a laggard of late, which needs to step up and we expect it to happen soon. Traders/ Investors are advised to keep following ‘Buy on declines’ strategy and should focus on apt candidates which are gearing up for decent moves going ahead.
We hope for the new Samvat to bring back a lot of positivity in the market and by next Diwali, markets should be at much-elevated levels with broad-based rallies from hereon.
If we look at the way some of the stocks from the broader markets were hammered, most of them are now trading near multi-year lows or 52-week low.
Market participants had to undergo a lot of stress as we didn’t see any respite in the market. Finally, in the second half of September, our Finance Minister pulled off a masterstroke by slashing the corporate tax rate.
This certainly bolstered traders’/ investors’ sentiments, which was then reflected in a colossal rally of more than 8 percent in merely two days.
However, the pain is still not out of the system as we can see some indecisive swings thereafter. In the midst of all, the market is at the cusp of a very interesting junction.
In the week gone by, Nifty50 moved in a range of 150 – 180 points to close with a loss of 0.7 percent for the week ended October 25. As per our recent ‘Time Retracement’ analysis, Nifty has reversed exactly in the September month and is now well above recent lows.
But, the million-dollar question remains the same, are we going to see a sustained rally from hereon or not? Honestly, this would probably be the toughest question to answer.
But, we are still hopeful. We have seen bulls trying to flex their muscles a bit and hence, some good days could come for our markets.
On the daily chart, we can see a breakout happening last week from an ‘Inverse Head and Shoulders’ pattern. Although the follow-up move is lacking, and one should remain upbeat as long as the recent swing low of 11,090 is intact.
Meanwhile, 11,450-11,350 can be seen as immediate supports and on the higher side, the rally could extend towards 11,850-11,900, and then beyond 12,000 once Nifty manages to sustain above 11,700.
The Banking index has been a laggard of late, which needs to step up and we expect it to happen soon. Traders/ Investors are advised to keep following ‘Buy on declines’ strategy and should focus on apt candidates which are gearing up for decent moves going ahead.
We hope for the new Samvat to bring back a lot of positivity in the market and by next Diwali, markets should be at much-elevated levels with broad-based rallies from hereon.