Nifty closed marginally higher in a downright boring session that saw the index oscillate in 41 points range throughout the day. As a result it has formed a ‘doji’ candlestick on the daily chart that suggests indecision among the participants. Nifty has managed to stay afloat the 21 and 50 hourly EMAs at 5106 and 5087 respectively that will keep the prices well supported, whereas the resistance at 5145/5155 will keep the sellers active. Trading volumes in yesterday’s session were at an average level and the market breadth ended in favour of advances showing the bulls were more active in the broader markets. Momentum oscillators are trading in the positive territory indicating an upside risk to the market. We however believe that the near-term price action is corrective in nature that warrants a dip down to the 5000 mark where buying is likely to emerge. Only a sustained move above 5155 will negate our corrective bias and put the Nifty back in upward trending mode that could go on to test 5300 i.e. the 61.8% retracement of the Feb-Jun downmove.
Trend among the sectoral indices was mixed with gains registered by Metals (+1.28%), Cap Goods (+1.17%) and Healthcare (+1.16%) indexes; whereas mild losses were seen in IT (-0.41%) and FMCG (-0.20%) indices. Mid-cap and Small-cap indices outperformed from the broader markets with gains of 0.83% and 0.79% respectively.
Bullish Setups: TATA, HUVR, BJAUT, PWGR, DRRD
Bearish Setups: COAL, TCS, MSIL, AXSB, DLF, HDFC
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