Visit http://indiaer.blogspot.com/ for complete details Edelweiss Technical Reflection (ETR)
§ Nifty traded lower for the second day in a row in what was a range bound session till afternoon and the selling intensified in the final hour. Nifty was unable to trade consistently above the 21 DEMA now proving to be a stiff resistance and went on to close below the psychological 6000 mark. Momentum oscillators continue to dip with a decline in prices and are now in sync with the price action. Market breadth continues to remain in favor of bears for the fifth consecutive session. Nifty stocks’ breadth was adverse at 1:3. Nifty has now entered a support cluster between 5930-5985 where a small pullback towards the hourly averages at 6045-6080 is expected. Traders can look to initiate sell trades there for a price objective of 5840 in the near-term and place reversal above 6095.
§ Weakness persisted in the Metals, Realty and Consumer Durables shares. A late rally kept the Cap Goods stock in the positive followed by Pharma and Oil & Gas stocks. Bullish Setups: GAIL, IBREL, RIL, SIEM, UPE. Bearish Setups: AXSB, JSTL, BHARTI, LICHF, SESA.
§ European and US markets have reversed the losses from the previous session as the underline price and momentum strength continues to attract buyers into these markets. Base Metals seem to have completed the corrective cycle and look attractive for the next leg higher.
§ Interesting chart setups: RIL, GAIL, SUEL, AXSB, LICHF
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