Nifty - Technical Analysis: -Nifty gaped up around 11550 owing to positive sentiment and buying observed in midcaps and smallcaps due to the recent SEBI circular. -We were unable to sustain above 11,550-11,575 which is a little concerning. Even if it were to take a day or two and then get past those levels, we are in bullish territory. -NSE Nifty settled 24 points or 0.21 per cent lower at 11,440
Market - Driving Factors: -IT and pharma led the rally as several small and mid-cap stocks registered smart gains today despite the clarifications put out on multi-cap schemes of mutual funds. -Nifty IT and Realty indices jumped up to 5 percent while the broader market was trading on a choppy note. Shares of HCL Tech and Mphasis jumped 10 percent while those of Larsen & Toubro Infotech, Wipro, PCS and Infosys jumped up to 6 percent. -Trade cautiously and look at earnings stability, if investing for the long-term in small-caps. -On the flip side, BSE Telecom, Banks, Finance and Energy failed to perform and ended the day with losses.
Nifty - Outlook for Tuesday, 15th September: Owing to US elections in November, we can expect volatility ahead. India VIX was up 2% today. People are suggested not to take huge risk in the coming months as we can see a government trigger coming. During the last US elections, before 20-30 days India came up with demonetisation. Due to the current scenario chances of a cheering clause can be expected. Small cap and mid cap rally can be benefitted from and good companies with earnings stability and growth can be cherry picked for good returns.
@subhashsurabhi, If it breaks 11200 then we can see much lover levels. Make sure to exit if we cross the resisatnce zone
ddsrawna
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@Algokart,
During upmove nifty placed 11185/11367/11477/11579 (today) as resistance/support on open basis. Since 11477 failed on friday sell off was assumed on nifty today in opening basis (Extremely overbought in open basis at open + 25-35 point).
Algokart, So i think atleast 11367 should be tested where nifty deeply oversold and upmove continued.