Strong buying in the second half of the session helped a rather lethargic session perk up the benchmark index that closed with gains of 0.40% at 5274. Earlier in the day, the index opened marginally lower to register a minor lower low of 5233 and it seemed will close the ‘bullish gap’ at 5220, however on European markets ticking up, a round of covering helped indices climb above the 21-hour EMA resistance and close near the highs of the day. Nifty has maintained its head above the 50-day EMA as well as the falling trend line from the February to July peaks. Volumes were on the lower side, but the breadth improved strongly in favor of advances indicative of wide scale covering in the broader markets. Volatility dived down to 16.59 from 17.28 and should stay suppressed in the immediate near-term. Momentum oscillators that had given a buy crossover on hourly charts from an oversold state are on course to testing the neutral zero line, suggesting further headroom for prices. The rebound rally of the decline from 5449 to 5233 seems to be on course that has potential to test 5315 / 5340 levels where weakness is likely to resume. On the downside, 5200 remains an immediate support.
Sectorally, the high beta sectors were amongst the gainers and the defensives like IT (-0.05%), Healthcare (-0.04%) and FMCG (+0.20%) ended flat. Leading indices of the day were Realty (+1.59%), Oil & Gas (+1.19%) and Power (+0.92%). Outperformance of the broader market indices over the frontline benchmark continues with gains of 0.53% for the Mid-cap index and 0.39% for the Small-cap index.
Bullish Setups: INFO, TCS, RIL, BIOS, APNT, GDSP,
Bearish Setups: CNXBANK, LT, HNDL, ONGC, IDFC, HDFCB
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