INSUBCONTINENT EXCLUSIVE:
Stock market witnessed a lackluster session on Thursday, as it did not make any major headway, despite managing to keep its head above key
While witnessing no major directional move, Nifty ended flat with a minor gain of 5.20 points or 0.05 pe cent.
In our previous note, we had
expressed concerns about the market lacking breadth and not showing enough conviction required to make a major upmove and sustaining at
Such minor cracks are visible and we now expect the index to witness more consolidation in a defined range before making any major headway
on the higher side.
Friday’s session is likely to remain sluggish with the moves remaining capped on the upside
We expect the levels of 11,090 and 10,160 act as immediate resistance
Supports may come in at 11,030 and 10,910.
The Relative Strength Index (RSI) on the daily chart stood at 63.8987 and marked a fresh
14-period high, showing no divergence against the price
The daily MACD continued to trade above its signal line in a flattened trajectory.
A small black body emerged on the candles
This formation cannot be defined as a spinning top, but it certainly conveyed lack of conviction at higher levels.
All in all, minor signs
of weakness have started showing up at the current levels.
The present structure on the charts clearly suggest that Nifty is finding it
difficult to negotiate a level higher than its immediate past high
The volumes are lower than usual and the market breadth continues to be a concern
We suggest staying away from creating any heavy exposures and protect profits at higher levels
A cautious view is advised for the day.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory
He can be reached at milan.vaishnav@equityresearch.asia)
