It was a rather lackluster trading session as a promising start to the day did not live upto expectations, ultimately resulting in a narrow trading range marred by intraday volatility. A ‘bullish harami cross’ candlestick pattern has formed on the daily charts couple with a low volume day signature indicating upside risk in the near term. Nifty has managed to regain the 5700 mark which is a psychological boost. Market internals indicate a marginally favorable breadth and a drop in volatility. On the flipside, momentum oscillators on the daily chart have rolled over with the MACD giving a sell cross warning of near-term downside risk. On the whole the index is likely to trade in a range of 5730 to 5630 on the back of mixed technical signals. The 21 and 50 hourly EMAs continue to offer resistance and only a higher high above 5728 will set the bullish tone, whereas any drop to 5650/5630 should be used to enter trading longs as the overall structure continues to remain bullish helped by the bullish pivot at 21-day EMA of 5614 (daily closing basis).
Trend among the sectoal indices was bent on the bullish side, barring the mild losses in Oil & gas (-0.45%), Power (-0.08%) and Autos (-0.04%) indexes. The top gaining sectors of the day were Healthcare (+1.14%), IT (+1.10%) and FMCG (+1.05%). Broader market Mid-cap and Small-cap indices traded inline with their frontline peer with gains of 0.47% and 0.33% respectively.
Bullish Setups: CNXBANK, BHEL, ICICIBC, PF, APNT
Bearish Setups: HMCL, BJAUT, IRB, TTMT/A
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