13 Jan: Edelweiss Technical Reflection (ETR)

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Edelweiss Technical Reflection (ETR)

Nifty ended a fairly volatile session with a loss of -0.61% at 4831 following an extremely small range bound move on Wednesday. Yesterday’s session was dominated by large losses in the heavyweight IT sector that managed to keep the lid on the index moving higher. On opening Nifty slipped below its 21 hourly EMA only to pullback higher towards 4869 which was the high of the day. Selling emerged at higher levels pushing it down to 4800; a psychological support that helped the index recover to close at 4830. However the resultant candlestick is a ‘spinning top’ which is again a sign of indecision among participants. Nifty has managed to take support at the re-test of the falling trend line breakout earlier in the week at 4800 and moved higher indicating underline bullish strength in the market. This has also been supported by the momentum oscillators that continue to trade in bullish territory. Only the short-term oscillators have moved in overbought zone which could result in some profit taking. Trading volumes have been on the rise and the market breadth was dead flat at 1:1. We continue to remain cautiously optimistic on the Nifty as long as it manages to trade above the pivotal 4800 and maintain our target of 4921 (minor bearish gap) before a meaningful correction sets in. Also with the start of the earnings season the market are vulnerable to declines as has been witnessed in the previous three quarters in the ongoing bear market.

Among the key sectoral performances the IT index (-5.96%) was the biggest dragger on the markets followed by Oil & Gas (-0.81%) and Cap Goods (-0.22%). On the gainers list were Power (+1.32%), Metals (+1.08%) and Banking (+1.08%) indices. Broader market Mid-cap and Small-cap indices managed to outperform the frontline index with gains of 0.26% and 0.15% respectively.

Bullish Setups: IRB, COAL, PIHC, HDFCB, DLF, RIL

Bearish Setups: INFY, PWGR