INSUBCONTINENT EXCLUSIVE:
In absence of positive triggers, the domestic stock market took a breather on Thursday as NSE Nifty snapped a five-day winning streak to end
52.90 points or 0.48 per cent lower at 10,982.80
The index has been clinging on to its short-term 20-DMA at 10,960.
The headline index exhibited signs of exhaustion at higher levels, and in
the absence of positive triggers, may trade with a negative bias over the coming sessions
The 50-DMA and 200-DMA levels are negatively converging at 11,200, and this may act as the confirmation of a sluggish medium-term trend.
We
expect a tepid start to trade on Friday and the 11,000 level will be critical to watch out for
The 11,050 and 11,130 levels will continue to act as stiff resistance
Supports may come in at 10,910 and 10,850.
The relative strength index on the daily chart stood at 47.79 and stayed neutral, showing no
divergence against the price.
The daily MACD was bullish and traded above its signal line
An engulfing bearish line formed on the charts
This candle may be potentially bearish as it has emerged after an upmove
However, this will need confirmation on the next bar.
The pattern analysis showed that Nifty is showing signs of exhaustion after the recent
The 11,100-11,200 zone remained a stiff resistance zone for the index.
Nifty futures have added over 9.46 lakh shares or 5.62 per cent in
The index is poised at such a critical juncture that it will continue to face pressure at higher levels unless the 11,100-11,200 zone is
taken out convincingly.
Until this happens, we will continue to see the market remaining highly vulnerable at higher levels.
We advise
traders to continue to approach the day on a cautious note, while avoiding excessive exposure on either side.
(Milan Vaishnav, CMT, MSTA is
a Consultant Technical Analyst at Gemstone Equity Research - Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
