INSUBCONTINENT EXCLUSIVE:
After surviving the recent lows in Thursday’s trade and managing to keep its head above the 10,180-10,250 zone, the Nifty50 continued its
pullback in Friday’s session
The market saw a positive opening and during the session, it went on to further strengthen itself.
The surge was secular, as all sectoral
indices, barring IT, ended the day with gains
The benchmark index ended the day 237.85 points, or 2.32 per cent, higher.
As we step into a new week, we expect a positive start to
Nifty has managed to move past its important pattern resistance level at 10,400
With a positive start to trade, we expect the market to continue its pullback
In the event of any consolidation, the 10,400 level is expected to offer good support to Nifty.
The 10,510 and 10,575 levels are likely to
act as potential resistance area for Nifty50
Supports are expected to come in at 10,400 and 10,330 levels.
The RSI on the daily chart stood at 36.8266 and it remained neutral showing no
The daily MACD remains bearish as it trades below its signal line
It is seen flattening its trajectory
A white-body occurred on the candles
The market has bounced back from its support area and shown signs of a potential bottom formation for the immediate short term.
Friday’s
bounce has come on the back of sharp short covering and there are enough signs that the market is in the process of marking and confirming
In Monday’s trade and in subsequent sessions, it would be important to see that the short covering is accompanied by buying at lower
levels.
In any case, Nifty must maintain itself above the 10,400 mark to continue with its upward move
In the event of any consolidation from higher level, the 10,400 mark will be important to watch
Any dip below this mark will again infuse some weakness in the market.
Overall, we continue to recommend making select purchases at lower
It is also advised to remain highly selective and rotate sectors effectively.
Stocks to watch:On Friday, short covering was seen in PNB,
ITC, Jindal Steel, Hindalco, HCC, Bharti Airtel, Tata Steel, BPCL, IDBI, Dabur, Vedanta, Federal Bank, Gail, HDFC 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)
