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Nifty reclaims 10,600; these 10 stocks rise 10-34% in 5 days

The S&P BSE Sensex rose 0.85 percent while the Nifty50 gained 0.92 percent for the week.

November 17, 2018 / 01:37 PM IST

The week gone by was a volatile one for the Indian market but the bulls managed to push benchmark indices above crucial resistance levels, which is a positive sign.

For the Nifty, 10,600 acted as a tough resistance level. The index witnessed selling pressure above 10,600 in 3 out of the 5 trading sessions. The Sensex slipped below its crucial support of 35,000 earlier in the week.

The Sensex rose 0.85 percent, while the Nifty gained 0.92 percent during the week. The broader market turned in a mixed performance but there was plenty of action in certain stocks.

As many as 10 stocks on the BSE 500 rose 10-30 percent -- Jet Airways, 8K Miles, Adani Transmission, Trade Investment, Dilip Buildcon, Schneider Electric, Bajaj Holdings, Bharti Airtel, Radico Khaitan, Linde India, Aditya Birla Capital, and Godrej Industries.

The market was kept buoyant in part because of favourable macroeconomic factors like the rupee, which appreciated to a 2-month high, and crude, which fell 4 percent.

Another big factor that pushed the markets higher was consistent buying by foreign institutional investors. FII inflow was around $73 million in the past five days, while DII outflow in the same period totaled $181 million.

On the BSE Mid-cap index, which rose 0.35 percent, 3 stocks rose 10-20 percent -- Godrej Industries, Bajaj Holdings, and Adani Transmission.

On the BSE Small-cap index, which fell 1.27 percent, as many as 40 stocks rose 10-30 percent, including Electrosteel Steels, Stampede Capital, Sunil Hitech, Ok Play, KSK Energy, Nitin Fire, Tata Investment, Radico Khaitan, and NIIT, among others.

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Technical View:

The market has been inching higher to breakout from its 50-day and 200-day moving averages coinciding at 10,774 and 10,767. And, for the bulls to remain in charge, Nifty should hold on to its crucial support of 10,600.

One big positive from last week was that Nifty did manage to hold on this support level. Technically, the market needs some strong triggers going ahead to extend the pullback and sustain at higher levels due to various important hurdles on the chart.

"The first major supply zone is of 10750 – 10850 which is the placement of 200 days SMA and a gap area on the daily chart. This zone is then followed by the hurdle of the rising trend line on the weekly chart," Mehul Kothari, Senior Technical Analyst, IndiaNivesh Securities, told Moneycontrol.

"Only a move above 10850 would reinforce the index to retest the 11000 mark. However ,if we concentrate on a larger picture then it can be seen that the index is possibly making a Head & Shoulder pattern with a bigger time frame and the ongoing price action is just a part of its right shoulder which might top out anywhere near to 11000–11200 mark," he said.

Kothari added that as of now, he would advise traders to keep booking profits at every higher level, since we are still not out of the woods.

"Conversely, in case of profit booking from hereon 10440 mark might act as an intermediate support below which the ongoing relief rally could be in jeopardy," he said.

On the options front, maximum put open interest is placed at the 10,000 strike price, followed by the 10,200 strike, while maximum call open interest is placed at 10,800, followed by 11,000.

Put writing is seen at 10,600 followed by 10,700 strikes while Call writing is seen at 10,800 followed by 10,700 strikes which could restrict its upside momentum. Options band signifies an immediate trading range in between 10,550 to 10,800 zones.

India VIX fell down by 0.54 percent at 18.35 levels and volatility is narrowing down from last three sessions. VIX has to cool down below 17-16 zones to get the next leg of smooth upside rally in the market.

Kshitij Anand
Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Nov 17, 2018 01:37 pm

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