Weekly Market Outlook - Mr. Rakesh Tarway - Head of Research, Reliance Securities

NIFTY continued prior trend of closing flat on weekly basis despite witnessing higher volatility as compared to previous week. Index ended with a gain of 0.3% after oscillating in range of 183 points. Markets participants booked profit in Auto, Realty & PSU- Bank indices, all of which declined in range of 3%-4%. However, rest of the sectoral indices managed to outperform NIFTY by 0.4%-1.7%. CNX Midcaps and CNX Smallcaps underperformed NIFTY as they posted decline of 0.4% & 1.2% respectively.

NIFTY has once again ended the week on an indecisive note, with a Doji candle, but our view will remain positive provided index stays firm above its trend reversal level of 8,650. We believe,violation of that level will face sharp profit booking in Mid Cap as well as Small Cap counters. The option data continues to suggest a strong resistance at around 8,950 to 9,000 mark on the upside.

NIFTY Bank rose to its all-time-high after RBI announced lifting of ban on HDFC Bank's purchase by FIIs.NIFTY Bank and HDFC Bank reversed almost all gains on the same day as RBI again put HDFC Bank on ban list for buying by FIIs. Now, crucial support is placed at around 20,000 on Bank NIFTY below which we could see sharp profit booking in banking counters. NIFTY Pharma is likely to continue its outperformance, as Index reversed after taking support around its long-term 200 week moving average. Any kind of positive news flow with respect to the sector may spark a strong up move from current levels.

Source : Equity Bulls

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