INSUBCONTINENT EXCLUSIVE:
Indian stock market closed Calendar Year 2018 on expected lines, as NSE benchmark Nifty opened on a positive note, but halted once again at
its 100-DMA and retraced from there.
Despite buoyant undercurrent, session remained dull and directionless, with index settling with a
negligible gain of 2.65 points or 0.02 per cent.
As we enter New Near on Tuesday, expect market to again trade lacklustre
Even as we will have overnight US market clue to deal with, major global markets will remain shut on Tuesday
We expect a dull session with lower trading volumes.
Tuesday is likely to see levels of 10,910 and 10,965 acting as immediate resistance
Supports may come in at 10,835 and 10,780.
The Relative Strength Index (RSI) on daily chart stood at 55,5323
It continued to remain neutral, showing no divergence against price
The daily MACD remained bearish, as it traded below its signal line
A small black body emerged on candles
In present technical structure, it remains insignificant.
Pattern analysis revealed that Nifty has managed to hang above falling trendline
However, extension of upmove has been stalled near 100-DMA, which is at 10,908.
Overall, market is likely to have a rangebound session ahead
If we analyse FO data along with open interest figures, undercurrent seems intact and buoyant
Though Nifty may continue to resist 100-DMA and consolidate in a narrow range, there are chances that eventually this level may be taken
out and market extends its upmove.
We recommend continuing to use dips to make select purchases and adopt a highly stock-specific view
Until 100-DMA is taken out, all profits should be protected at higher levels
Shorts, however, may be avoided at overall structure on charts remain intact.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at
Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
