SAMEET CHAVAN, Angel Broking
In the week ended June 18, the Nifty fell 0.7 percent, putting an end to the 4-week gain. Last week we saw a lot of reversal in different sectors and some strength in defensive sectors like FMCG and IT.
Last week was very bad for the metal sector. During this period, there was a decline of about 7 percent in this sector. Similarly, despite some recovery, the banking index closed with a one per cent fall last week. The Nifty Midcap 50 index lost over 3 per cent last week. Last Friday, the price action was like a half-full and half-empty glass.
However, the key indexes managed to stay above their key levels. But the market appeared to struggle at higher levels. During this time, there was some fatigue in small-medium stocks too. We mentioned in the previous week commentary how Nifty-50 has moved towards the Fibonacci cluster in different ways. The week ending Friday has also confirmed our belief.
We are now into Monthly Expiry Week and we are looking at the overall market position. We think the market will see volatility this week. If we look at the weekly chart of Nifty, we can see two small body candles one after the other.
Last week’s formation resembles the hanging man pattern. Such a pattern is confirmed when a breakout from its low occurs. In this situation it will be interesting to see how the market will behave in the first half of this week.
As far as the levels are concerned, there is an immediate resistance of 15,820-15,880 for Nifty. On the downside, it has support at 15,550-15450,15,400. Traders would be advised to lighten their positions at higher levels.
2 strong calls for short term
HDFC Life Insurance Company |LTP: Rs 709.20 | Buying advice is given in this stock with a stop loss of Rs 681 for a target of Rs 746. An upside of 5 per cent is possible in this stock in 2-3 weeks.
UPL |LTP: Rs 808 | This stock has a Selling advice of Rs 849 with a target of Rs 765. 5 per cent fall is possible in this stock in 2-3 weeks.
Facebook us for social media updates (https://www.facebook.com/moneycontrolhindi/) and Twitter (.) to follow.