INSUBCONTINENT EXCLUSIVE:
Contrary to expectations, NSE’s Nifty50 index made a strong comeback on Tuesday and formed a robust bullish candle even as it erased all
the losses of the previous session
The 50-share Nifty pack closed 79.35 points, or 0.70 per cent, higher for the day at 11,435
The index opened the day at 11,381 and touched an intraday high and low of 11,452 and 11,370, respectively.
After Tuesday’s session, the
daily MACD reported a negative crossover and now trades below its signal line
No other significant formation was observed on the candles
“On the face of it price chart is suggesting bullishness, but technical oscillators on lower time frame charts are still on sell mode
with the daily MACD triggering a fresh sell signal in Tuesday’s session, which is a cause for concern,” said Mazhar Mohammad, Chief
Strategist – Technical Research and Trading Advisory, Chartviewindia.in.
MACD is moving average convergence divergence and is used to
capture trend reversal in the market.
Analysts said to confirm more strength in this leg of upswing, Nifty50 needs a strong close above
“This current leg of upswing can be expected to initially extend towards 11,615 level
As the technical picture is looking mixed as of now, traders are advised to remain cautiously optimistic with a stop loss below 11,367,”
he said.
“We expect the market to remain vulnerable to bouts of profit taking at higher levels and remain in a broad trading range,”
said Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory.
The domestic equity market will remain closed on Wednesday on
account of Independence Day
On the options front, maximum Put open interest (OI) stood at 11,000 followed by 11,200, while maximum Call OI was at 11,500 followed by
There was meaningful Put writing at 11,400 and 11,500 levels, whereas Call writing was seen at 11,700, followed by 10,600
“The option band signified a hold in the current trading band between 11,350 and 11,500 and then 11,600 levels,” said Chandan Taparia,
Technical Derivative Analyst, Motilal Oswal Securities.
