Visit http://indiaer.blogspot.com/ for complete details Edelweiss Technical Reflection (ETR)
§ The index struggled to get past the crucial 6125 barrier and slipped sharply from there in Friday’s session. It has just managed to close the week in the green keeping the bulls in the hunt. The 21 daily EMA has supported the index well at 6040. The market has clearly entered a range trade between 6284-5965 in the short-term. Market breadth on Friday turned back in favor of the declines. Nifty stocks’ breadth was at an adverse 1:2. Volumes have significantly dropped suggesting the corrective nature of trade. Nifty needs to break the range between 5965 – 6165 to get back into a directional trend. Momentum oscillators are presenting a mixed picture, and thus the price action will lead the market direction.
§ Realty, FMCG and Metals shares dragged the index down in Friday’s session. Buying strength was witnessed in IT and Telecom shares. Bharti Airtel has taken support on weekly and monthly moving averages supporting the longer-term uptrend, thus offering good risk-reward opportunity on the long side. Bullish Setups: GAIL, IBREL, RIL, UNTP, BHARTI, CIPLA, ABGS. Bearish Setups: SESA, GMRI.
§ Among the Global equity indices, the Asian markets had a negative trend followed by a strong week in European indices and a marginally positive trend in US markets. The German DAX has the best bullish set-up among the global indices with upside potential towards 7180. Major currencies have halted the ascent against the USD near important resistance levels and have entered a phase of sideways consolidation. The DXY similarly has taken a pause after testing 76, and oversold readings on oscillators.
§ Interesting chart setups: RIL, BHARTI, CIPLA, SESA
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