NSE-INDEX OUTLOOK – 28 November, 2016

NSE-INDEX OUTLOOK – 28 November, 2016

For educational purpose only, please trade after consulting with your advisor.

NIFTY 50: On last trading session we have seen a gain of 148.80 points (+1.9%)  and closing at 8114.30. Now Nifty has entered into the buying zone as it closed above its short term moving average. However this trend is still subdued at Index is trading below its Long term Moving Average.

 Now what’s next: Nifty saw a sharp rally on Friday and entered into buying zone but we are expecting this rally may not continue. We have seen a continuous up move in US Dollar index which we expect is negative for this market.  A big Interest Rate cut by RBI can boost the rally.

Support: 8064/7990/7950/7935/7897/7800/7777.

Resistance: 8161/8188/8205/8250/8296.

Now, nifty will enter into sell zone if it close below 8097.50.

NIFTY BANK: On last trading session we have seen a moderate gain of 251.2 points (+1.4%) however overall Index looks weak on the charts and it is still is sell zone with negative sentiment. The key thing for consideration is that Nifty is trading above its short term moving average and below its long term moving average. However in the case of bank nifty, the case is opposite. Bank Nifty is trading above its long term moving average however below its short term moving average. So we are expecting that Nifty will come down to align with Bank Nifty.

Over the weekend a great move from RBI to curb excess liquidity from Market by  announcing the CRR hike by 100% . This is negative for banking shares specially PSU Bank as they have to deposit more money with RBI without getting any interest on that. We are expecting Base rate cut from Bank at very high pace, because since they are not getting any Return from RBI on his deposit, then why they will pay you 6%+ interest on FDR.

Support: 18140/18050/17980/17720 Resistance: 18540/18690/18780

On last trading session FIIs were net sellers of Rs. 372.88 Cr and DIIs were net buyers of Rs. 997.84 Cr in Capital markets.

We believe the rally in NIFTY will be supported by NIFTY IT and NIFTY Pharma.