Weekly Review - 18th December 2017

Dear All,

Most of the exit polls suggest a victory for the BJP in the state elections in Gujarat. A victory for the BJP will be received well by the market while a surprise defeat would be a large negative surprise for the market.

All eyes are on Monday when the actual election results will be announced. Most experts do see a fresh high on Monday at least but a bounce back could be followed by profit booking.

The index witnessed some bit of selling pressure at higher levels on Friday and most of the good news is already in the price. Hence, in the event of BJP making a clean sweep in Assembly elections results of Himachal Pradesh and Gujarat, markets will rise on short coverings but could witness some profit booking at higher levels, suggest experts.

The exit polls suggest 114 seats for the BJP and 67 seats for the INC based using averages across various exit polls. A win of the incumbent party will be taken positively by the market but slowly the focus will shift from elections to the macro picture which has weakened significantly.

Derivative Picture:-

On the options front, maximum Put open interest was seen at 10000 followed by 10200 strikes while maximum Call OI was seen at 10500 followed by 10400 strikes.

Significant Put writing was seen at 10300 and 10200 strikes while Call writing remains intact at 10450 and 10500 strikes ahead of the election outcome.



>>> Nifty Weekly Chart - Posted on Last Weekly Review <<<

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Wrote on Last Weekly Review - Price gave a Bullish Hammer.

>>> Nifty Weekly Chart <<<

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Price rallied as expected and More Yet to come.

>>> Nifty Daily Chart <<<

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Might be a Flag pattern - if breaks out - may trigger fresh rally. Key Resistance @ 10370-75 and 10440.

>>> Nifty Hourly Chart <<<

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Much awaited Gujarat Results may trigger the bullet on monday morning on either side.

>>> Bank Nifty Weekly Chart - Posted Last Weekly Review <<<

>>> Click the chart to see on full screen <<<Mentioned Price made a Dragon fly doji near 20 WMA.

>>> Bank Nifty Weekly Chart <<<

>>> Click the chart to see on full screen <<<Second dragon fly doji on weekly chart - shows - Bulls are still waiting.

>>> Bank Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<Resistance @ 25520 and 25710 if breaks may rally more.

>>> Bank Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<Price must break above the channel Resistance @ middle, Else consolidation or correction may begin again.

>>> CNXPSUBANK - Hourly Chart <<<

>>> Click the chart to see on full screen <<<3690-3700 if Holds - Expect a Bounce back on all PSU Bank Stocks.

>>> DRREDDY - Hourly Chart <<<

>>> Click the chart to see on full screen <<<We are Long and Price may test or Break above the channel. Resistance @ 2390 & 2450.

>>> N4A - Whatsapp <<<

>>> Click the chart to see on full screen <<<Send request with Name and Locaiton.