Indian markets rallied hard yesterday and managed to outperform the Asian peers with a gain of 0.87% for the benchmark Nifty index. After an indecisive session earlier, the bulls took charge of proceedings in the final couple of hours rallying 83 points from day’s low to climb above the 5155 resistance level. Daily candlestick represents a strong bullish belt hold pattern where the close is at the high of the day. Volumes continue to be at an average level but the breadth was strongly in favor of advances. Nifty continues to maintain its head above the 200 DMA at 5074 which will be an important pivot in the ongoing range bound trade of the past couple of weeks. With weekend round the corner, bulls need to defend the 5139 to manage third straight weekly positive close that will keep the hopes of a further rally alive. Momentum oscillators are trading in the positive territory on daily and hourly charts indicating an upside risk to the market. Although our stop-loss level of 5155 has been triggered, the index is expected to open lower following the weak Asian markets and it will be important to watch the intraday support of 5100 / 5096 for further direction.
Among the notable sector movers were stocks from the Realty (+2.89%), Cap Goods (+2.18%) and Banking (+2.06%) indices; whereas the underperformers were stocks from Oil & Gas (-0.89%) and IT (-0.19%) sectors. Broader market indices traded in line with the frontline index and ended with gains of 0.81% for the Mid-cap index and 0.76% for the Small-cap index.
Bullish Setups: TATA, HUVR, HMCL, PWGR, DRRD
Bearish Setups: COAL, TCS, MSIL, AXSB, DLF, HDFC
Regards,
Edelweiss Research
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