Edelweiss Technical Reflection (ETR)
§ The Nifty continued its time correction with yet another sideways consolidation. The opening was strong in line with Asian peers. the Nifty declined after the opening and traded in a narrow range for the day. On Japanese candlestick, it was formation of long upper shadow which followed a doji. Few strong cues one can take from the unfolding of price action is that the support level of 6100 is still holding on while the strength is gradually returning with almost 2:1 advance decline for the broader market as well as the Nifty. Short term corrective price action would end in event of price advance past 6220 while breach of 6100 would aggravate the current upmove. Weekly setup continues to appear strong which requires reiterating the channel target of 6500 post current consolidation
§ Metals and Auto stocks rallied in a day which was otherwise lackluster. Fertilizers stocks alo depicted immense strength. Banking stocks remained under marginal selling pressure. Bullish Setups: CIPLA, KTK Bank, IFCI, RIL Bearish Setups: HDFC Bank, Bharti, And ICICIBC.
§ Major global indices have been in synchronized upmove in last few sessions. SPX has comfortable moved above the 1150 mark and is on road for 1200-1225 in the current quarter. Momentum indicators have improved significantly on the weekly chart negating any substantial downside risks. USD-EUR has closed above the 61.8% retracement of the fall from 1.51 to 1.18. Crude oil is consolidating around USD 82 and is poised to advance towards 88 mark
§ Interesting chart setups: RIL,KTK Bank, BHARTI
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