Technical Outlook for CNX Nifty
After four successive months of northward journey, we saw the benchmark index, CNX Nifty, taking pause in the September month as it closed almost unchanged after consolidating in broader range of nearly 340 points (i.e. 7841.80-8180.20). Meanwhile, it also formed a new life time high at 8180.20 but finally settled at 7964.80.
Technically speaking, the charts are showing negative to sideways bias to continue in the month of October; however, the downside is limited. It’s basically a pause after an exceptional move that we had witnessed in last eight months. So, further correction to 7650-7750 zone in the Nifty can be utilize to accumulate fundamentally strong counters for investments. But, do keep in mind that stock specific move could wary due to upcoming earning session, which is starting from Friday, 10th October, 2014.
Nifty Sep. rollover was at 72% in line in terms of Open interest compared to last month. Among the stock futures positions have declined in Mid-Caps and increased in Large Caps implying traders booking profits as we seen. Auto, IT, FMCG, PHARMA C-o-C improve; on the other hand shorts built up in banking, capital goods, cement , power and realty. Infrastructure saw pick in rolls M-O-M at 87% , media sector has seen a drop in rolls above 6 month avg. at 83%, metals have seen drop in rolls below 6 month avg. at 81% . Pharma have seen pick in rolls at 84%.