Weekly Indian Equity Market Review (30th October-3rd November)
Indian Equity Market participants had a tough week, as bulls and bears entangled into an oscillated battle, resulting in volatility over the week. Bulls ruled the Monday session, but profit booking on Tuesday and Thursday trimmed the gains for the bourses.
The Nifty started the week at 10,353.85 and traded in the range of 10,323.95-10,461.70. The index closed the week at 10,452.50, up 1.25% from last week’s close. After opening at 33,260.10, the Sensex gained 1.59% this week to settle at 33,685.56. The index traded in the range of 33,164.28-33,733.71.
Consecutively, for five weeks, broader market continues to extend its gains with the Nifty Midcap and Smallcap indices inflating 2.26 % and 4.12%, respectively.
From the sectoral point of view, Nifty Realty, PSU bank, and Financial services were the top most gainers for the week with gains of 8.44%, 4.07%, and 3.46%, respectively. However, Nifty IT, Metals, and FMCG deflated 0.21%, 0.17%, and 0.09%, respectively.
In other news, Nikkei India Services Purchase Manager’s Index (PMI) data was reported today during the market hours. The index rose to 51.7 in October, from September’s 50.7. However, the data is far below the historical average of 54.
On Wednesday, Nikkei Manufacturing PMI data came out at 50.3, for the month of October in comparison with 51.2 in September. The fall is attributed mainly due to negative sentiments of Goods and Service Tax (GST) roll out in the industry.
Along with PMI data, Auto sales data was also announced on Wednesday. Top six passenger vehicle manufacturers, who control more than 90% of the domestic car market, posted a growth of just 4% in the month of October.
Next week, on Wednesday, the M3 money supply data is expected to be released. This could turn out to be a market mover in the next week.
This week, the Nifty lost one distribution day; thus, taking the distribution day count to two on the Nifty while the Sensex lost all its four distribution days this week taking the count to zero. The Indian Market remains in confirmed uptrend.
Approach for the coming week
The markets continue their winning streak. The week observed some consolidation in the market, due to lack of some positive trigger for the investors. However, benchmark indices still managed to touch new highs on many occasion.
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Technical summary for coming week (6th November-10th November)
Nifty perfectly achieve our first target of 10450. Next targets is 10560 & 10640 with a stop loss of 10330.
NSENIFTY is long term Bullish as the 144 days moving average of 9,739.98 is increasing. The Relative Strength Index is at 71.12 in the overbought territory. The Relative Momentum Index is at 79.61 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 252.43, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 91.40. This value is in the overbought territory.
Weekly Pivot Point Resistance and Support
The first weekly resistance level is at 10,519 while the second resistance level at 10,569. The first weekly support level is at 10,336 while the second support level is at 10,147.50.
BANKNIFTY also started it’s upward jouney. our next target is 26073 & 26566.50 with a stoploss of 24476.
BANKNIFTY is long term Bullish as the 144 days moving average of 23,549.54 is increasing. The Relative Strength Index is at 68.83 in the neutral territory. The Relative Momentum Index is at 72.69 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 731.74, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 97.58. This value is in the overbought territory.
Weekly Pivot Point Resistance and Support
The first weekly resistance level is at 25,379.55 while the second resistance level at 25,919.55. The first weekly support level is at 24,476.05 while the second support level is at 23,372.55.
Some stocks for your portfolio:-
Wockpharma is looking good for medium to long term. Medium term target is 898.
WOCKPHARMA is long term Bearish as the 144 days moving average of 643.82 is decreasing. The Relative Strength Index is at 64.88 in the neutral territory. The Relative Momentum Index is at 71.20 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 32.18, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 88.65. This value is in the overbought territory.
We have detected a Gann Swing or Pullback that is usually a bullish pattern! It should be used with other indicators.
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.
8+ Years working as a derivative trader, Option Writer, Blogger, Trader by passion, Keen Follower of Indian share market