Visit http://indiaer.blogspot.com/ for complete detailsEdelweiss Technical Reflection (ETR)
§ The Nifty managed to test yet another High in the early trades but failed the test of 6300. Stiff supply at higher levels saw the index pare big portion of the gains registered earlier this week. Short term oscillators swung back in bearish territory yet again. The price pattern is quite interesting here as the throwback to the falling channel breakout level provides bulls yet another opportunity to buy the dips. On the other hand a break of previous day low would confirm short term trend reversal as the breakout would be rendered false. Market breadth was weak again at 1:2 while Nifty scrips depicted much severe damage with 9 declining scrips for 1 rising. For traders one should maintain longs with 6071 (20 SDMA) as trading stop loss. Close above 6250 would lend bull’s further confidence
§ Select Metal and IT scrips remained strong throughout the day whereas broader index was getting sold off. OMCs have been drag on the markets for a while and continue to appear weak. Fertilizer stocks rallied to capitalize on the strength garnered last week and breached the resistance levels.
Bullish Setups: Tata Steel, Wipro
Bearish Setups: HDFC Bank, BPCL, and Powergrid
§ Interesting price action is being witnessed in global markets. Dollar Index breached the support to decline to 7 month low while Euro managed to close above 1.4 Aussie continued its advance to almost parity level which is appearing to be a very stiff resistance. Gold, Silver, Crude and Sugar advances further to multi month highs
§ Interesting chart setups: Tata Steel; Powergrid
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