4 April: Edelweiss Technical Reflection (ETR)

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Edelweiss Technical Reflection (ETR)

The indices moved within a narrow range with a positive bias through the day today, coupled with a strong market breadth and average volumes. The Nifty managed to advance past 5350 suggesting that the momentum is still bullish. On daily chart the Nifty has just stopped below the trendline of the triangle placed around 5400.

Oscillators remain a mixed bunch with Stochastic showing strength while MACD and RSI still in a neutral/negative setup. A move beyond 5400 will turn the short term trend up and is likely to start a fresh leg of upward momentum.

 On short term momentum front, oscillators have remained into the positive territory on the hourly charts and RSI and Stochastics have rolled bullish on the daily chart. In the immediate near-term, we expect Nifty to test the resistance from the trend line falling off the February peak at 5380, beyond which the upside is open towards the recent high of 5630. Fresh trading longs can be initiated on a daily close above 5380 with a reversal pegged below the 50 hourly EMA. The intermediate uptrend is pivoted by the crucial 200 DMA at 5148.

Among the sectoral performances, the gains were led by consumer, Cap Goods & oil & gas while weakness in Healthcare, & IT dragged the market a tad lower

Bullish Setups: ADE, BHEL, NTPC, RIL, CNXBANK, LT, CAIR

Bearish Setups: ACC, MSIL

Regards,