Stock Market Technical Outlook 20-May-2016

Market Wrap

INDIAN MARKET OVERVIEW

The Nifty opened up with Negative note and ended down with 86.75 points or 1.1% at 7783.40. The trend of Market is looking uncertain due to the global clues.

After a lot of struggle fearing fed rate hike and results of assembly elections, the market has ended with losses. The market has ended down with 304.89 points or 1.2% at 25399.72.About 913 shares has advanced, 1638 shares declined, and 161 shares are unchanged.

Lupin Q4 profit soars 47% on US biz despite 65% rise in R&D cost. US formulation business for the quarter increased by 58.7%, India by 14.7% and Japan sales rose 17% compared to year-ago period. Rest of World markets clocked in sales growth of 38.3% in Q4 while South African subsidiary, Pharma Dynamics recorded 7.1% degrowth in sales.

Assembly Elections 2016: Sun TV tanks 12%, Raj TV soars 20% on AIADMK win in Tamil Nadu Chennai-based Sun TV owned by Kalanithi Maran grandnephew of DMK President M Karunanidhi had jumped 11% on Tuesday as most exit polls had predicted that the DMKCongress alliance may win the state elections in Tamil Nadu.

GLOBAL MARKET OVERVIEW

Asia markets start pricing in possibility of imminent Fed hike Japan’s benchmark Nikkei 225 index tacked on 0.68%, likely driven by the stronger dollar helping to push down the persistently stronger yen, which has been dampening earnings for the country’s exporters.

Bank shares buoy Wall Street as Fed signals possible June hike The Dow Jones industrial average fell 3.36 points, or 0.02%, to 17526.62, the S&P 500 gained 0.42 points, or 0.02%, to 2047.63, and the Nasdaq Composite added 23.39 points, or 0.5%, to 4739.12.

Wall Street closed flat on Wednesday after a volatile session, supported by bank shares, as the minutes from the Federal Reserve’s April meeting signaled a potential interest rate increase in the near term.

Technical Outlook Nifty

Technical Overview:

Nifty futures opened with negative note than witnessed bearish movement rest of the day and made a low of 7775, manage to close near to its low at 7785.Over all Nifty is looking bullish on charts but On the upcoming session Nifty may trade in range of 7700-7900levels. Once can make a short position on higher levels and buy from lower levels. Down ward side major support level of 7530.

Bank Nifty Technical Overview:

Bank Nifty futures opened with negative note after that Bank Nifty test the level of 17000 and made a high of 17282 buy it could not sustain on higher levels and witnessed bearish movement at the end of the day. Bank Nifty traded in range of 16500-17000 level. On the upcoming session if it sustain below the level of 16500 marks then down ward movement expected. On the down ward side it holds major support level at 16250.

Technical Overview:

Stock recommendation for 20/05/2016 is CESC. The stock is in consolidation since two weeks and yesterday it has declared its quarterly result which was quite positive. It has created a strong resistance at 555 and if the prices sustains above this level then we can expect a strong up trend. The stock also rebounded on monthly time frame and heading towards next level of retracement i.e. 50 %. Buy CESC above 557 for the target of 570 and 585 with stop loss below 537.

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