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Earnings progression to steer stock specific moves!

ICICIdirect Research 18 Oct 2024 DISCLAIMER

Defying the global trend Nifty consolidated in narrow range to settle down with a cut of 1% at 24700 amid mixed Q2 earnings.  

Currently, Nifty is poised at lower band of past 2 weeks consolidation at 24700 amid oversold conditions. Thereby, traders should refrain from creating aggressive short position as possibility of pullback can not be ruled out.

What to expect: Going forward, we expect Nifty to consolidate in 25200-24700 range amid stock specific action. Only a decisive close below 24700 would result into extended correction towards 100 day EMA placed at 24400

Structure: Current 7% correction in Nifty has hauled many large cap stocks to their key long term averages which offers favourable risk reward set up. In a bull market, 7-10% correction is a common phenomenon. Buying in such scenario have been fruitful from medium term perspective. Hence, accumulating quality large caps would be the prudent strategy to adopt amid ongoing earning season

US rally broadening: The breakout from 2 and half year’s consolidation in Russell 2000 index signifies broader participation that bodes well continuation of ongoing bull run on ahead of US election and further rate cut expectation  

Crude oil price have dropped 5% after facing stiff resistance in 80-82 zone. In upcoming weeks, we expect it to consolidate in 72-80 range

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