Nifty consolidated in a narrow range of 50 points for the second day in a row before the crucial September series derivatives settlement on Thursday. It is quite unusual for markets to remain subdued in an expiry week where vols have dropped to 17.11, tracked by the India VIX. After a mildly positive opening, the index tested 5700 where selling persisted to take it down to 21-hourly EMA support of 5650. A minor rally post-noon helped it pare some of the losses to close with a gain 4 points. Volumes were similar to yesterday's session and the breadth remained neutral. A small bullish 'doji' pattern has formed on the candlestick charts that warn on a resumption of the up move. Momentum oscillators have cooled off in the immediate near-term providing room to move up. We continue to maintain our bullish stance, targeting 5750 / 5800 with crucial support at 5610.
Trend among the sectoral indices was largely positive with gains registered in Realty (+2%), FMCG (+1.85%) and Healthcare (+0.60%) indices. Among the losers of the day were Metals (-1.36%), Auto (-0.72%) and Oil & Gas (-0.20%) indices. Mid-cap index (+0.46%) and Small-cap index (+0.53%) outperformed the frontline benchmark.
Bullish Setups: CNXBANK, BHEL, DLFU, POWF, SHRS, TPWR, LANCI
Bearish Setups: TCS, DRRD, HUVR
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