Apr 24: Edelweiss Technical Reflection (ETR)

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Edelweiss Technical Reflection (ETR)

Indian markets tanked on the first day of the trading week with the Nifty ending 1.7% lower at 5200. Despite the index opening on an optimistic note the sellers became active on test of 5300 and pushed the index lower till close and ended near the lows. The fall however was on the back of low volumes and the market breadth was dismal with an A/D ratio of 1:3.3. Volatility spiked up to 21.57 tracked by the India VIX. Oscillators have whipsawed into sell once again, however maintain their sideways trajectory. After failing from the 50 day SMA at 5337, Nifty has fallen back to its earlier support area of 5200/5180, and in case of a breach lower, the 200 DMA sitting at 5136 will provide the necessary cushion. Immediate upside seems restricted to the convergence of 21 and 50 hourly EMAs at 5280.

All the sectoral indices ended the day in the red led by sharp losses in Realty (-3.17%), IT (-2.94%) and Metals (-2.86%). Defensive shares outperformed the benchmark index with marginal losses in Oil & Gas (-0.08%), Healthcare (-0.45%) and FMCG (-1.05%). Broader market indices too witnessed a sell-off to the extent of -1.67% for the Mid-cap index and -1.54% for the Small-cap index.

Bullish Setups: MSIL, TTMT, GNP, COAL, RIL

Bearish Setups: DLF, IDEA, BHEL, BPCL, RCOM, JPA

  

Regards,

Edelweiss Research