INSUBCONTINENT EXCLUSIVE:
In Wednesday’s session, Nifty made a half-hearted attempt to move past the 10,850 mark, which has been posing critical resistance to the
In a session that remained largely rangebound and capped on the upside, the 50-pack came off from the high point of the day and settled with
minor gains of 13.85 points, or 0.13 per cent.
We expect a quiet start to Thursday’s session, but just like the previous session, the
10,850 level and Nifty’s behaviour vis-à-vis this level needs to be watched
Nifty will have to move past this level in a convincing manner for any meaningful upward move to occur.
If it faces resistance at higher
levels just like it happened in the previous session, it is likely to be pushed into some more consolidation.
The 10,890 and 10,945 levels
will be immediate resistance for Nifty50 on Thursday, while supports will come in lower at 10,810 and 10,760 levels.
The Relative Strength
Index or RSI on the daily chart stood at 63.0384 and it has reached its highest value in last 14 days, which is a bullish signal
It does not show any divergence from price
The daily MACD remains bullish even as it trades above the signal line
Apart from the black body that occurred on the candles, no significant formations were seen.
Going by pattern analysis, Nifty is making
attempts to move past the pattern resistance that exists in form of falling trend line that emerges from 11,170 and subsequently joins the
falling tops.
FO data and lead indicators exhibit strong undercurrent and buoyant intent of the market
There are chances that though we might see some corrective swings given the current structure of the markets, but eventually Nifty is likely
to move past the 10,850 mark, which has been posing important pattern resistance to the market.
We are also likely to see some volatility in
trade and the session is likely to remain rangebound with limited downsides and underlying buoyant intent.
One should continue to guard
profits at higher levels, but selective purchases may be made.
STOCKS TO WATCH: Good technical set up is observed in stocks like JSW Steel,
SBI, RELIANCE, ICICI BANK, YES BANK, AXIS BANK, EXIDE, POWERGRID, INDIA CEMENTS, MM and TATA MOTORS.
(Milan Vaishnav, CMT, MSTA is
Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
