Daily Morning News Letter – 8th OCT 2018 EQUITY – FO –CASH-OPTION MARKET


Market Trend   :

 Big Sell off by FIIS   —  Net Sellers

Nifty Crash 1496 points (from 11760 to 10294 – Earlier down 1220) points

Maximum correction likely 15% from High 11760 which is 9996  (50 points in either side )

Major Support –  Nifty  9900-9952   –  Bank Nifty   23605-23800

Last bull market support of Nifty 9800  – thereafter towards 8000   +

At these level market will go extreme over sold and RSI below  20 

Strong Pull Back and V Shap Rally cannot be ruled out.

 IT STOCKS – Ready to fall  – Play short side +

Market Out Look :

On Friday after RBI policy market finally crashed and almost 700 points down of Nifty in last three trading sessions whereas Bank Nifty down more than 3500 points from a high.  Strong bearish zone but some more down side and likely test 10000 mark whereas a extremely oversold market and strong bull back also possible.  On Over all rising of crude prices and depreciate of rupee also a big problem of Indian economy.  On the Sect oral Indices, major sell off seen like Nifty Auto and trading b below 52 weeks low, Nifty PSU Bank almost near to 52 week low, FMCG heavy selling seen, Media, Rality  also trading below 52 week low. Only IT are outperformer in market and trading near to all time higher but it  will not sustainable and any time selling imminent.

On Monday if market open with down side gap, do not play short sell and wait for opportunity to rise then play short sell, best way to avoid trading in Index and stock specify is a best and safe strategy.

Remember we are bearish below 11171 and advised to exit long  all positions,  sell  all delivery and sell all mutual fund investment and all money convert into Liquid assets and wait decline in market and around 10000  + any where start investing.  

Nifty Spot  :  10316

Last 3 trading sessions major sell off seen and almost 700 points wipe out. However, trend is bearish. Consider resistance nearly  10500 and remain below down side open towards 10200-10000-9950 likely. TREND REVERSAL LEVEL 10538 .

Trend is Down – Loss 5.6% last week – Major support of bull market 9800 + (thereafter start bear market)

Major support on monthly chart at 10000 +   

 

Last week High Low Close 52 High 52-Low
Trend 11036 10262 10316 11760 9906

 

 

5 DMA 10 DMA 50 DMA 100 DMA 200 DMA
10742 10892 11321 11040 10780
On Weekly Chart 9962 9081

 

Nifty Future  :  10347

NIFTY 50  FUTURE – As the graph of nifty future shows that the next major support level for nifty would be 9950 – 10000 and most probably it could either bounce back or break out after consolidation at this levels. BE CAUTIOUS decisive close below the level of 9950 next target could be 8000 towards the lower side which is not looking possible unless and until some extreme negative news in the market

Last week Trend High Low Clos
Nifty Future 11090 10292 10347

Bank Nifty Spot  :  24443

After RBI policy maket finally break down and heavy selling seen across the sector and Bank Nifty Future finally made a low 24272.   Bearish trend continue with consider resistance 24500-24600 remain below down side open towards 24000-23600 easily. Weekly and monthly support 23600 and likely test in coming days.   

Bank Nifty on Weekly Chart  –   Trend is down – Support 23600 +

Last week High Low Close 52-W High 52-W LOW
Trend 25470 24251 24443 28388 23604
5 DMA

 

10 DMA 50  DMA 100 DMA 200 DMA  
24702 24747 26445 26792 26105  
On weekly chart 23946 20873  

FO QUES   :

 

  NIFTY            BANK NIFTY
Highest Put 10500-10700 24000
Highest Calls 11000-11200 25000
Put Writing  
Call Writing 11000-10600-10700  
Long Side TCS, TITAN  
Short Side HPCL  BPCL  ONGC
Short Covering  
Long Exit  
  FIIS STATISTIC  
FIIS    
DIIS    
STOCK Future  

CNX PSU BANKS     : 2656

Last week it was made a bottom 2634 and finally break down support level.  Now in this week major resistance 2750-2760 watch out.  Over all selling pressure continue.

Last week High Low Close 52W-High 52-W Low
 Trend 2862 2634 2656 4335 2634
5 DMA 10 DMA 50 DMA 100 DM 200 DMA  
2743 2758 3081 2977 3107  
On Weekly Chart 3275 3190  
Basket of PSU Banks :   SBI –BOB-Can Bank- Indian Bank_ Syndicate Bank, Union Bank, Andhra Bank, IDBI, All Bank, Bank of India.

CNX IT    :     15592

After made a all time high some selling pressure seen but still holding positive bias.  As the market conditions, advised to book profit long side and any time big sell off likely.

Trend is down – CNX IT was the best performing of 2018 – closed below support level-

Last week High Low Close 52W-High 52-W Low
Trend 16282 15266 15592 16361 10527
5 DMA 10 DMA 50 DMA 100 DMA 200 DMA  
15798 15918 15385 14644 13636  
On weekly Chart 11842 11547  
Basket of IT Stocks  –  TCS-Infosys,Wipro, HCL Tech, Tech Mahindra, Infebeam, OFSS, KPIT  Tata Elexi.

 

CNX Pharma  : 9547

After made a high heavy profit booking seen and finally break down 10000 mark and over all selling seen.  However, it has still holding 200 DMA which is a positive sign and any sharp dip to buy side of front line stocks.

Last week Trend High Low Close 52W-High 52-W Low
Trend 10143 9496 9547 10786 7900
5 DMA 10 DMA 50 DMA 100 DMA 200 DMA  
9827 100006 9316 9315 9188  
On weekly Chart 11842 11547  
Basket of IT Stocks  –  

http://www.3mteam.in

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