Weekly Stock Market Technical View July 3, 2017

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July 3, 2017

Indian market started trading for the truncated week on a negative note and thereafter, it traded cautiously with high volatility ahead of the GST rollout. Nifty ended the week on a negative note for the third consecutive week to shut shop in red by 0.56% on a weekly closing basis. On the monthly basis Nifty closed in negative terrain for the first time since January 2017. The June derivative series posted higher ever turnover of Rs 14 lakh crore on the expiry day. CDSL made a stellar debut and marked high of Rs 269.95 on the listing day and ended the day at 261.60 against the issue price of Rs 149. Going into the first week of the next quarter, Auto sales numbers & Cement despatch numbers will be coming out, hence Automotive stocks and Cement stocks will remain in concentration for the first half of the week. In addition, June Nikkei Markit Manufacturing PMI and Nikkei Service PMI are also expected. Global cues will also play a key role in the coming week including the movement of crude oil and currency fluctuations.

Technical View: After holding the crucial support level of 9540-9550 on closing basis, Nifty has breached the immediate weekly support of around 9540-9550. Going forward, the level of 9449 its recent swing low and 9464 its 50-day EMA will continue to act as a crucial support zone for the Nifty. If Nifty slips below mentioned supports, then fresh selling may drag the index towards 9390 levels. On the flipside, the zone of 9550-9590 may act as an immediate resistance zone for the Nifty.