Home / Markets / Stock Markets /  Indian stock market showing signs of fatigue though structure still bullish

Indian equity markets are continuing their northward journey, snubbing the weakness in global markets. Nifty has also completed its unfinished business of hitting an all-time high. However, the broader market is still lagging behind the momentum. The overall structure is still bullish, but some fatigue is visible as the market is not getting support from global markets.

The December series started on a heavy note, as we have seen a healthy rollover with a Nifty futures premium of more than 130 points. Long positions in index futures by FIIs are also at a 2-year high. Therefore, the market is overbought on the derivative front, and it may consolidate or witness some correction before resuming its bullish momentum.

On an immediate basis, 18500 put writers are showing strong confluence; therefore, Nifty will try to trade above 18500, but if it slips below that level, we can expect some profit-taking where 18325–18245 is the next support zone. On the upside, 18800/18888/19000 will be the next resistance levels.

Bank Nifty is also consolidating in the range of 42700-43300 with intraday volatility. If it manages to cross the 43,333 level, then we can see a move towards the 43700–44000 area. If it falls below 42700, we can expect some profit-taking towards the 42200–42000 range.

On an immediate basis, Q3 GDP numbers and monthly auto sales numbers will be important domestic factors, then the market will keep an eye on the RBI credit policy and the Gujarat election. Globally, news flow from China may continue to cause volatility, while the movement of the dollar index, US bond yields, and crude oil prices will be other important factors.

Santosh Meena, Head of Research, Swastika Investmart Ltd.

Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Take the test
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Recommended For You

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout