INSUBCONTINENT EXCLUSIVE:
Contrary to what was expected, the market on Tuesday witnessed a better-than-expected session, as the NSE benchmark Nifty saw a sharp
rebound and recovered all of its previous day’s losses.
In a relatively stable session, the NIFTY ended the day gaining 79.35 points or
However, it remained in a broad range that it has defined for itself post marking highs of 11,495.
Market will open on Thursday after a
trading holiday on account of Independence Day.
As we approach Thursday’s session, we expect the markets to open on a quiet note
Also don’t expect any significant broader move in the market, as the Nifty is expected to remain in a broad range that it has defined for
itself.
Nifty continues to remain vulnerable to profit taking bouts at higher levels, and any consolidation that happens, which is in fact
required, will make the market healthier.
Thursday will see the levels of 11,470 and 11,495 playing out as immediate resistance area
Supports may come in lower at 11,370 and 11,310 zones.
The Relative Strength Index (RSI) on the daily chart is 66.6763, and it remains
neutral showing no divergence against the price
The daily MACD has reported a negative crossover, and it is now bearish while trading below its signal line
No notable formations were observed on the candles.
Pattern analysis shows the Nifty is consolidating in a broad range after marking
immediate high at 11,495 after breaking out from the 11,175 level.
The market continues to remain in firm primary uptrend
However, post marking high of 11,495, the Nifty is likely to consolidate in a broad range.
Even if we see a modestly positive opening on
Thursday and market inching higher in the initial trade, it would be all the more important to vigilantly protect profits at higher levels
as the market continues to remain vulnerable to profit taking bouts at higher levels.
We recommend chasing momentum, but that should be done
on selective basis while adopting vigilant and cautious approach at higher levels.
STOCKS TO WATCH: Long positions were seen being built in
stocks of Sun Pharma, Reliance, Axis Bank, NCC, ICICI Bank, ITC, Tata Steel, Coal India, Ambuja Cements, KPIT, LTFH and DHFL.
(Milan
Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
