Finally, the frontline benchmark index saw some upside traction after having made a 'higher top' above 5740 to test the upper boundary of the upward sloping trend channel at 5800. This represents the strong upward momentum that the Indian markets are in and can possibly lead to higher levels in the coming sessions. Today's trading activity was supported by average volumes and a continued strength in market breadth underlining the overall bullish sentiment. Vols continued to remain at lower levels undermining the confidence of the bulls and the lack of any bearish risks. Despite an overbought reading in momentum oscillators, Nifty continues to make higher highs and higher lows indicating a strong uptrend. While the index might face some resistance around 5800 levels, it is most likely to trudge towards 5900 (i.e. the equality target of the initial upmove from low of 4530 to 5630, from the intermediate low of 4770). It is advisable to keep trailing stop-loss to the 10-DEMA of 5680.
Gains in today’s session were led by Realty (+1.94%), Banking (+1.92%) and Cap Goods (+1.89%) sectors; whereas mild losses were seen in Healthcare (-0.92%), IT (-0.28%) and Autos (-0.08%) The frontline index bounced back today, managing to outperforming the broader market Mid-cap and Small-cap indices that closed the day with gains of 0.41% and 0.35% respectively.
Bullish Setups: CNXBANK, BHEL, ICICIBC, DLF, PF, RCAPT, JPA
Bearish Setups: JSP, HMCL, BJAUT
No comments:
Post a Comment