Visit http://indiaer.blogspot.com/ for complete details Edelweiss Technical Reflection (ETR)
§ Following the previous weeks’ down move, Nifty opened on a softer note and traded below the 6000 mark in the morning session. It took support at the 5985 mark and reversed the losses for the day to close near the highs of the day. In the process it has made a ‘Bullish Hammer’ candlestick pattern on the daily chart, which makes the low of 5985 an important support level. Since most momentum oscillators are pointing lower, the price action suggests a pullback from oversold conditions on the intraday charts. Overall market breadth was in favor of bears for the third consecutive session. Nifty stocks’ breadth improved to close at 1:1. With a rollover in the momentum oscillators and a sharp drop in prices from 6200 levels, the near-term price action points towards a pullback that can last upto 6170-6200 where renewed selling activity is likely to emerge.
§ The index recovery was managed by strength in IT, Oil & Gas and Realty shares. Consumer Durables and FMCG stocks were on the losing side. Despite yesterday’s weakness, we continue to maintain a positive bias on the fertilizer stocks. Realty stocks have managed to maintain the bullish strength and offer further upside potential. Bullish Setups: GAIL, IBREL, TTMT, SUEL, RIL, PLNG. Bearish Setups: AXSB, BPCL, BHARTI.
§ Major western equity indices traded positively in yesterday’s session building up on the gains of the previous week. SPX is well on course for 1200-1225 in the current quarter. Gold is struggling to go past the recent high of $1387, and is vulnerable to profit taking at current levels. Crude Oil is consolidating between $81-83 before it resumes its leg higher towards $88-90.
§ Interesting chart setups: RIL, GAIL, SUEL, AXSB
No comments:
Post a Comment