Archives : MID-CAP MANIA GRIPS THE MARKET - 28/04/2017.

MID-CAP MANIA GRIPS THE MARKET - 28/04/2017.

 

SENSEX CROSSES 30000.

It was a record shattering week as the Sensex joined Nifty in registering lifetime highs and in the process overcame the psychological level of 30000. Even as the front-line indices are moving above lifetime highs now, the market focus is on the Mid-Cap Index and Bank Nifty. These indices have not only surpassed their lifetime high levels sometime back but are rapidly moving higher. The Mid-Cap Index is going from strength to strength and hence the market participants are making merry. In the short term, immediate support comes in the form of bullish gap between Nifty 9250-9225.



MID-CAP MANIA GRIPS THE MARKET - 28/04/2017.

 

SENSEX CROSSES 30000.

 

It was a record shattering week as the Sensex joined Nifty in registering lifetime highs and in the process overcame the psychological level of 30000. Even as the front-line indices are moving above lifetime highs now, the market focus is on the Mid-Cap Index and Bank Nifty. These indices have not only surpassed their lifetime high levels sometime back but are rapidly moving higher. The Mid-Cap Index is going from strength to strength and hence the market participants are making merry. In the short term, immediate support comes in the form of bullish gap between Nifty 9250-9225.

 

TECHNICALLY SPEAKING.

 

Sensex opened the week at 29407, made a high of 30184, low of 29392 and closed the week at 29918. Thus it closed the week with a gain of 553 points. At the same time the Nifty opened the week at 9135, made a high of 9367, low of 9130 and closed the week at 9304. Thus the Nifty closed the week with a gain of 185 points.

 

On the daily charts, both the indices have made a small black body candle on Friday. On the weekly charts, both Sensex and Nifty have formed a big Opening White Body Marubuzo. This is a strong Bullish pattern. Thus candlestick study indicates a bullish bias in the near term.

 

This week, the indices have left behind a bullish gap while moving higher between Sensex 29780-29681 and Nifty 9250-9225. This gap will act as Support in the near term.

 

Last week, the market went down to test the strong support in the form of the weekly gap i.e. between Sensex 29356-29098 and Nifty 9060-8977. This gap provided support and the indices recovered from that level. This Gap is now very significant as a break of this Gap will turn the medium term trend to bearish. Besides acting as a support, this gap also acts as a Measuring Gap. The target as per Gap theory falls at Sensex 32737 and Nifty 10144.

 

When the indices closed above Sensex 29077 and Nifty 8968, both Sensex and Nifty completed a Saucer formation on the daily charts. The target as per this pattern falls at Sensex 31153-32437 and Nifty 9630-10043. On the weekly formation, both the indices completed a Cup and Handle formation and the targets are Sensex 34677-37554 and Nifty 10536-11413.

 

If one considers the Cup and Handle formation of 7 years from 2007 to 2014, the target for that pattern falls at Sensex 34715 and Nifty 10462. The Golden Ratio target of the current pattern weekly pattern of 2 years is at Sensex 34677 and Nifty 10536. Thus in the medium term one can expect a test of the above targets i.e. Sensex 34677-34715 and Nifty 10462-10536.

 

MACD and Price ROC are both positive and continue with its Buy signals. RSI (63) suggests Bullish momentum. Stochastic Oscillator %K (88) continues in Buy mode. ADX is at 36 which suggest that the Uptrend is still strong. Directional Indicators continue in Buy mode as +DI remains above –DI. MFI (51) suggests Positive Money Flow. OBV continues to make lower top lower bottom formation. Bollinger Band has given a Buy signal on Wednesday. Thus Oscillators are suggesting a bullish bias.

 

This week, both the indices crossed and closed above the short term average of 20dma (Sensex – 29689 and Nifty – 9210). Both the indices continue to remain above the medium term average of 50dma (Sensex – 29289 and Nifty – 9068) and even the long term average of 200dma (Sensex – 27973 and Nifty – 8637). Thus the trend in the short term has turned bullish whereas the trend in the medium term and the long term timeframe continues to remain upwards.

 

Options data for May series indicate highest Call Open Interest at the strike of 9500 and highest Put build-up at 9000. Thus Options data suggests a trading range with resistance coming in at 9500 and support at 9000.

 

INDEX LEVELS:

 

 

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

9024

9133

9217

9304

9413

9509

9623

Sensex

28815

29241

29561

29918

30269

30662

30989

 

THIS WEEKS RECOMMENDATIONS:

 

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy Britannia

3624

3549

3737

3855

Buy CanFinHomes

2617

2550

2718

2823

Buy GaiL

423

413

438

454

Buy Hexaware

231

226

239

248

Buy KarnatakBank

163

159

169

176

 

WATCH OUT FOR:

 

 

Britannia

 

 

SRF

 

 

 

 

 

 

 

 

 

Disclaimer : The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness.

Copyright © 2000 - 2018 Jatin Sanghavi. All rights reserved.
No part of the material on this website may be reproduced or distributed in any forms or by any means, electronics or mechanical without the written permission of the author.
Sitemap