It was a futile day in the markets yesterday with Nifty oscillating in 50 points range as the bulls and bears fought it out to gain an upper hand.With a flat opening and rather listless morning session, the index managed to register a minor higher high of 5145 before falling prey to selling pressure. A ‘doji’ candlestick pattern has formed on the daily chart supported by high volumes indicating a high level of indecision. The factors in play for the bulls are that Nifty has managed to trade above its 50 and 200 DMAs that and could provide the platform to launch higher, where for the bears, the Nifty is facing strong resistance at 5145 / 5150 level with hourly momentum rolling bearish providing an opportunity to pull the index down to 5000 levels. Breadth slipped marginally in favor of declines.Coming back to momentum, the daily MACD has managed to move into positive territory which is an a positive signs where immediate near-term oscillators are overheated and showing negative divergence warning of a risk of profit taking. We suggest taking a cautious stance as the upside on the index is limited to 5150 / 5180 and one can see a retracement down to 5000 levels in the near-term. It is recommended to take profits on trading longs at higher levels and possibly initiate shorts risking 5200.
Trend among the sectoral indices was mixed with gains coming from Cap Goods (+1.58%), FMCG (+1.06%) and Healthcare (+0.45%) indices; whereas losses were registered in Realty (-1.47%), Auto (-1.47%) and Power (-0.81%) indexes. Even the broader market indices ended with mixed performance. The Mid-cap index lost 0.21% and the Small-cap index gained 0.13%.
Bullish Setups: CNXBANK, REC, HUVR, DRRD, SIEM
Bearish Setups: INFO, HDFC, MM
Regards,
Edelweiss Research
��
No comments:
Post a Comment