23 Nov -Edelweiss Technical Reflection (ETR)

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Edelweiss Technical Reflection (ETR)

Nifty finally ended the eight straight sessions decline with a minor gain of 0.70%. The day however was not easy as the intraday volatility was quite high within a small trading range as a result an ‘insider bar / harami’ candlestick pattern has formed. What is more interesting is that Nifty has closed above the lower Bollinger band (4802), and a harami pattern on lower Bollinger band is a potent recipe for the much needed bounce. Short-term oscillators continue to show oversold readings whereas the hourly oscillators point towards a bounce by rolling bullish. This suggests that overall downward momentum is in force and one should use every bounce as a rally to sell into. For the immediate short-term look for the index rallying upto 4900 / 4950 levels where one can look to initiate trading shorts. Important supports one should watch for are 4720 (yearly low) and 4675.

Among the sectoral performances, the IT index led from the front with 1.95% gains followed by Metals (1.54%) and Autos (1.08%) indices. The only index on the losing side was the defensive FMCG index with a loss of 1.36%. Broader market indices lagged the frontline space as they underperformed by ~0.40%.

Bullish Setups: HH, HDFC,

Bearish Setups: HCLT, LPC, TTAN, MM