Stock Market Technical Outlook 19-May-2016

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Market Wrap

INDIAN MARKET OVERVIEW

  • The Nifty opened up with slightly Negative note and ended down with 20.60 points or 0.3% at 7870.15. The trend of Market is looking uncertain due to the global clues.
  • On Wednesday, the market has ended down with 69 points or 0.3% at 25704.61.About 1241 shares has advanced, 1314 shares declined, and 179 shares are unchanged.
  • Punjab National Bank has posted net loss of Rs 5,367.14 crore in January-March quarter, which is the highest ever loss reported by an Indian Bank, against profit of Rs 306.56 crore in year-ago period. Sharp surge in provisions and weak asset quality hit profitability despite higher other income and big tax write-back.
  • JSW Steel ‘s fourth quarter consolidated profit nearly trebled to Rs 171.25 crore compared to Rs 62.38 crore in year-ago period, supported by operational performance and other income. Revenue declined 15% to Rs 10697.52 crore in quarter ended March 2016 compared to Rs 12599.7 crore in same period last fiscal.

GLOBAL MARKET OVERVIEW

  • Asia markets opened lower Wednesday, with Japan’s shares wavering as traders struggled to interpret data showing the country’s economic growth beat expectations. The benchmark Nikkei 225 index was up 0.62%, continuing to weave between positive and negative territories as traders were likely weighing whether the good news from the data was good or bad news for markets.
  • The Dow Jones industrial average fell 180.73 points, or 1.02%, to 17529.98, the S&P 500 lost 19.45 points, or 0.94%, to 2047.21 and the Nasdaq Composite dropped 59.73 points, or 1.25%, to 4715.73.
  • Wall Street sold off on Tuesday as investors boosted their bets on the Federal Reserve raising rates later this year, while Home Depot dragged on indexes following its quarterly report.

Technical Outlook

Nifty Technical Overview

Nifty futures opened with slightly negative and after that traded in range of 7811-7860, manage to close over 7800 marks. Over all Nifty is looking bullish but on daily charts it sustained below 200day moving average and major resistance level of 8000.On the upcoming session Nifty may trade in range of 7700-7900 levels. Once can make an short position on higher levels and buy from lower levels. Down ward side major support level of 7650.

Bank Nifty Technical Overview

Bank Nifty futures opened with slightly negative note after that traded in range of 16590-16700 on the middle session and manage to close over 16750 marks. Over all Bank Nifty is looking bullish on charts but it may have major resistance level of 17000. On the upcoming session if it sustain below the level of 16700 marks then down ward movement expected. On the down ward side it holds major support level at 16250.

Todays Stock Recommendation

Stock recommendation for 19/05/2016 is Kitex Garments. The stock broke the consolidation and trend line on daily time frame on yesterday. The stock crossed its last one months high and managed to trade above 450 level. If prices sustains above 470 then a short term up trend is confirmed. Buy Kitex above 472 for the target of 485 and 499 with stop loss below 450.

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