Saturday, 25 November 2017

Nifty 50,Bank Nifty,Market Update


Nifty 50


Nifty is looking extremely bullish on charts and all the indicators suggest that a rally is waiting ahead.On our previous blog we clearly indicated that Nifty has resistance around 10350--10380 and we saw Nifty struggle in that region throughout the week and hence closed in at 10390.We saw Nifty gain for five straight session and also saw a tussle between the bulls and the bears throughout the week with bulls emerging as winner.Now what to expect next week.Since India has been waiting for a sharp upside momentum news in the name of India rating upgrade by S&P which maintained a stable outlook for India as most position in the last trading session was made in this anticipation for a gap up Nifty open but now it may not be the case,One also has to understand that rating has important implication for the bond market but "who are we kidding" all market especially Indian stock markets are driven by sentiments and therefore we may expect a downside open on Monday as a temporary setback and every dip on the market should be used to build a long term position or as an buying opportunity.

Nifty is looking extremely stable in charts and making a case for all time high breakout which we may see before the expiry in the upcoming week ahead.RSI of 61 and increasing also indicate that Nifty 50 may soon enter an overbought zone with rise in volumes and one should not trust the bears if they start to show some panic in the start of the week as trend is clearly that of upside. MACD is also heading towards a positive crossover and this will make the trend positive for short term to come and expect sharp upside in December .

Immediate Supports Nifty 50 is in the range of 10350.Below this lower support lies around 10260 levels.Immediate Resistance lies around 10420.If these resistance are positively breached and sustained then one may see Nifty testing (10450--10500)+ mark in upcoming week ahead.


 


Bank Nifty

Bank Nifty looks highly stable in charts and this week we saw Bank nifty in consolidation mode and form a case of an upside breakout for making new all time high in charts and seems to be heading towards a positive breakouts to make new lifetime highs above 257900 level and now currently trading at 25779.If Bank Nifty is able to give consecutive closes above 25700 level or able to consolidate in the range of 25700--25625 then we may see more upside as every dip in Bank Nifty should be used as an buying opportunity with stocks like Yes Bank and Kotak Mahindra Bank ,ICICI Bank ,Canara Bank to mint money in short to medium term basis.

Although the fact that S&P rating for India remained stable we may see a negative sentiment at the start of the week and see some downside and bears will try to take full opportunity of this scenario to drag the index downward but one should not trust the bear as we may see sharp short covering if this case persist as all other technical indicators suggest a positive outlook for bank nifty in the upcoming week ahead.RSI of 64 and increasing also suggest that a bull run may be waiting ahead and we may see sharp upside if RSI enters into overbought territory. MACD with a positive divergence of 10.45 also indicate that an upward trend lies ahead in Bank Nifty for short term to medium term basis.Bank Nifty has immediate Support levels around 25625--25500.Below this lower support building around (25200--25150) level.Bank Nifty has immediate resistance around (25850--25900).If the mentioned level is positively breached and sustained and consecutive closes above these level takes place then we will see sharp upside rally in bank nifty as bank nifty will break its consolidation mode and enter new regions to make new life time high.




Market Update:


--Tech leads S&P above 2,600; Amazon, other retail stocks gain.----The Dow rose 31.81 points, or 0.14 percent, to 23,557.99, while the S&P gained 5.34 points, or 0.21 percent, to 2,602.42. The Nasdaq added 21.80 points, or 0.32 percent, to 6,889.16.--

--Technology stocks led the S&P 500 and Nasdaq to record closing highs on Friday, with the S&P ending above 2,600 points for the first time, while Amazon and retail stocks got a boost from signs of a strong start to the holiday shopping season.--


--The benchmark S&P 500 and the blue-chip Dow Jones industrials posted weekly gains for the first time in three weeks while the Nasdaq Composite posted its best weekly performance since the week to September 1.--
--The stock market had a half session on what is known as Black Friday, the day after the Thanksgiving holiday and the unofficial start of the US holiday shopping season.--
--US stores offered deep discounts, entertainment and gifts to draw bargain hunters, but some shoppers said they were just eyeing goods, reserving their cash for online purchases.--
--On Thursday, Thanksgiving Day, US shoppers spent more than USD 2.87 billion online, according to Adobe Analytics.--
--Adobe, which measures 80 percent of online transactions at the largest 100 US web retailers, forecast online Black Friday sales of USD 5 billion, which would be a record high. Online retailers could rake in an additional USD 6.6 billion on Cyber Monday.--
--The S&P retail index rose 0.75 percent and hit a record intraday high, led by Amazon’s 2.6 percent gain.--
--Brick-and-mortar stores, which have been boosting their online presence, also fared well.--
--Kohl’s Gap and J.C. Penney were up between 0.6 percent and 1.6 percent.--
--Target ended 2.8 percent lower at USD 55.88, with analysts noting that it closed its stores for several hours overnight while rivals stayed open. Wal-Mart inched up 0.2 percent.--
--The CBOE Volatility Index better known as the VIX and the most widely followed barometer of expected near-term stock market volatility, closed at 9.67, nearly a three-week low. Just after the stock market closed at 1 p.m. New York time (1800 GMT), the VIX fell to 8.56, ostensibly a record intra-day low.--
--The energy index and the materials index were boosted by rising commodities prices.--
--US oil prices jumped to a more than two-year high as North American markets tightened on the partial closure of a key pipeline linking Canada and the United States.--
--About 2.78 billion shares changed hands in US exchanges in the shortened session. The daily average over the last 20 full sessions is 6.48 billion shares. Last year, volume during the session after Thanksgiving was 3 billion shares.--
--Advancing issues outnumbered declining ones on the NYSE by a 1.61-to-1 ratio; on Nasdaq, a 1.31-to-1 ratio favored advancers.--
--The S&P posted 35 new 52-week highs and one new low; the Nasdaq recorded 120 new highs and 21 new lows.--


MORE WILL UPDATE SOON!!

Multi-bagger Stock Investment Pick

Its the best time of the week ,Yes its our multibagger stock selection time and today we our going to talk about a stock in which i invested 800 shares at the rate of 33 and now currently trading at Rs 49 in just 3 months time,yes the stock belongs to Finance-General sector and its name is ALANKIT LIMITED.

I am Holding for target of 70--80+

ALANKIT LIMITED


 


Alankit is looking superb in charts and if one is looking for a long term gain then surely this is a safe bet to jump on as both technically and fundamentally the stock is looking stable.Let talk about the technical aspect of the stock.

One careful analysis of the candlestick chart pattern i was already anticipating a bullish penant pattern as financial indicated me to do so.

RSI of 87 also suggest that stock is in overbought territory and we may see a bullish trend to remain in the stock till stock remain in overbought territory of 87--60.

MACD of positive divergence of 1.24 also suggest that trend is positive and will remain intact for sometime as stock has seen sharp rise in volumes which is expected to remain in the stock and this upward trend may persist for some more time before rally start to fade.

On careful analysis of stock movement in Ichomoku chart one can see that stock is comfortably above its 9 day conversion base line of 42 and this shows that stock is comfortably bullish and will remain to do so if 42 is not breached negatively.

Let us talk about the fundamentals of the stock:


Alankit Limited has shown stable results since previous quarters and on careful analysis on can see that stock is improving its earning drastically as it has already in its June 2017 and September 2017 quarters posted result of 11.30 crores  combined which is close to its previous yearly profit of Rs 13.26 crore with two quarter remaining and this clearly shows that stock will comfortably move to upper regions as it start posting its next quarterly result which is expected to be positive for the stock considering the previous years hiccups of demonetization at the previous year quarter as the same time period.

Key Fundamentals:

Market Cap:701.92 crore

EPS:0.93

Book Value:3.21

Dividend Yield:0.41

Face Value:1

Dividend Yield (%):20%

Div(%):10.00%

CONCLSION: My advice to all the viewers of the blog is to wait and watch sometime the stock movement and then  enter at a dip to make a fruitful long term position and keep adding at every dip to make a good holding in stock.Remember stock is low beta stock so one will be clearly safe from adverse price movement in times of consolidation.

Key Levels:

Immediate Support:42
Important support 38

Buy Zone 48--42

Long Term Target :70--80+




MORE WILL UPDATE SOON!!