Edelweiss Technical Reflection (ETR) 12 March

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Edelweiss Technical Reflection (ETR)

Bulls came back with a vengeance on the final session of the previous week after being under pressure for the better part. Nifty opened with a large gap up following a day’s rest and build on the gains only to close near the high of the day. The index has climbed above the 21 and 50 hourly EMA resistance and regained the 5300 mark. The up move was supported by good volumes and healthy breadth of 2.7:1. For the week however, it has managed registered a minor loss, its third in a row. Coming back to the daily charts, a ‘Golden Crossover’ (i.e. 50 and 200 DMA cross) has been achieved which is a reliable indicator of sustainable bull markets. ST momentum oscillators have rolled bullish on the daily chart, whereas the same on the weekly chart continue to strengthen the bullish setup. We maintain our bullish bias and the long call, with stop-loss trailed to 5230 for targets of 5455 and 5550. For the intermediate term, 5163 (200 DMA) becomes the pivot for the bulls.

Among the prominent sectoral changes, the high beta Metals (+4.69%), Cap Goods (+3.75%) and Banking (+3.66%) indices led the rally. The key underperformers were IT (+0.03%) and FMCG (-0.12%) indices. Mid-cap (+2.16%) and Small-cap (+1.35%) indexes closely followed the gains by their narrow frontline peer.

Bullish Setups: PWGR, CIPLA, CNXBANK, SHRS, HNDL