26 March: 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)

On the final session of an extremely choppy week, Nifty choppy Nifty managed to claw back some lost ground from the previous day’s sharp fall. The index opened higher and consolidated in a narrow range in the first half and rallied towards the 5300 mark in the second half. Although it has closed back above the 50 day MA, on the intraday charts, Nifty is facing minor resistance from the 21 and 50 hourly EMAs at 5291 and 5313 respectively. A consolidation pattern is in formation for the index between 5350 and 5200 which is likely to continue for couple of more sessions. Friday’s advance was backed by lower volumes and marginally better A/D ratio. Momentum oscillators are showing mixed signals with buy crossover on Stochastic and a sell signal from RSI and MACD. Weekly oscillator MACD on the other hand continues to gain strength as the MACD and the signal line cross above the zero line in positive territory. Volatility, tracked by the Indian VIX index is on the rise with a 1% gain for the week. Since we are in the final week of the month leading to the March series derivatives settlement, expect an uptick in the volatility. For the coming week, expect some weakness in the early part towards the 5200 mark and a recovery thereafter towards 5350 / 5400. The short-term and intermediate trend is pivoted at the 200 DMA of 5156.

Among the sectoral performances, barring the loss of 0.50% in Metal index, all other sectoral indices managed to close in the green. The top gaining indexes of the day were Realty (1.62%), IT (1.38%), and Banking (1.27%). Broader market indices saw an uptick, however managed to underperform the frontline index as the Mid-cap and Small-cap index closed with gains of 0.61% and 0.40% respectively.

Bullish Setups: LPC, HUVR, ITC, BHARTI

Bearish Setups: MSIL, HNDL, JUBI