Edelweiss Technical Reflection (ETR) :May 29

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

Edelweiss Technical Reflection (ETR)

Indian equity markets have had a good start to the week with the Nifty rallying 1.33% to trade above two-week highs at 4985. The index opened on an optimistic note and continued to climb higher throughout the day only to close near the highs of the day. It has managed to close above the 21 daily EMA putting the short-term trend on the up. The concern was on the volumes that were at extremely low levels, however the breadth remained in favour of advances and the volatility continued to subside to 23.68 from 25.14 on the India VIX. Short-term momentum is in favour of an upside with oscillators rolling bullish. We maintain our stance that the ongoing rally is a retracement of the previous fall and is likely to faces stiff resistance at the 200 DMA of 5070 and possible fail at that level. Immediate resistance is at the psychological 5000 level, whereas support comes in at 4915.

All the sectoral indices ended the day in the green and were led by gains in Banking (+2.40%), Power (+2.33%) and Cap Goods (+1.85%) indexes. Among the underperformers of the day were shares from Oil & Gas (+0.20%), Healthcare (+0.56%) and IT (+0.66%) indexes. The broader market indices traded in line with their frontline peer and ended with gains of 1.21% for the Mid-cap index and 0.87%S for the Small-cap index.

Bullish Setups: ICICIBC, DLF, BATA, TATA, JUBI,

Bearish Setups: DRRD, LICHF, JPA, BSEFMCG