The domestic market ended with strong gains with the Sensex closing 231 points higher at 36,212. The Nifty ended 53 points higher at 10,855. There was some weakness seen among metals and energy sector-s, along with PSU banks. Meanwhile, banks, automobile and consum-ption names rose during the trade. Both the midcap and Small cap indexes closed lower. Bharti Airtel, Axis Bank and ITC are the top gainers, while Yes Bank, Tata Steel, GAIL and HPCL lost the most.
Mustafa Nadeem, CEO, Epic Research said, “The Nifty forms a Pin bar as market completely rejects lower levels and close near day’s high in a volatile session. The Nifty gaped up on the back of positive cues and sentiment along with expansion based on previous day pattern.
On Wednesday’s chart, A pin bar pattern shows a longer lower shadow that indicates lower levels were completely rejected by market.”
“With that, we still believe the hurdle is placed at 10,890, a trend line, on a closing basis, which is drawn from peaks of 10,984. Once that is taken out; we expect a directional play is in the kitty for higher targets 11,050–11,150. Stay long with lower levels as an opportunity to buy in short-term,” he added. “In the near-term, we continue to remain cautiously optimistic on the market as we believe volatility and choppiness are likely to remain high. Investors’ focus would be on GST council meet scheduled Thursday, announcement of companies’ Q3FY19 results and domestic Marco data, which are likely to dictate the trend of the market in the coming sessions. Global developments, behaviour of crude oil prices and fluctuation in currency would be closely monitored.
We recommend investors to focus on value investing and traders to avoid risky leveraged positions,” he further said.
Publication : Financial Chronicle
Date: 10th January, 2019
Page No.: 04
Editions: New Delhi, Mumbai, Bangalore, Chennai, Hyderabad