Nifty was unable to build onto the gains of Monday as it faltered at the 4900 mark and ended the previous session on a flat note. The index traded in a narrow range of 52 points, gaining in the first half and shedding the gains by the close of day. The lack of bullish follow through and the resultant ‘doji’ candlestick pattern indicates doubt among the participants regarding the short-term direction of the market and could keep the trade lackluster. Volumes continue to be lethargic and the market breadth improved marginally in favour of advances. Momentum indicators have turned sideways and thus are unable to give a directional cue. In the near term we expect Nifty to oscillate within a trading range of 4945 (21 DEMA) and 4770, before a clear break is achieved. The underline trend however remains down and rallies to resistance should be used to create short positions.
Sectroal trends continued to remain mixed with gains coming from Cap Goods (+2%), Banking (+0.82%) and Power (+0.80%) indices, whereas losses were witnessed in stocks from Realty (-1.37%), FMCG (-1.10%) and Metals (-0.27%) indexes. The Mid-cap and Small-cap indices closed the session with gains of 0.33% and 0.21% respectively.
Bullish Setups: LT, HPCL, BPCL, DLF
Bearish Setups: DRRD, LICHF, APTY
Regards,
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