INSUBCONTINENT EXCLUSIVE:
Indian stock market in a muted session on Thursday remained in a defined range and ended flat
The NSE benchmark Nifty settled with a negligible loss of 6.15 points or 0.06 per cent.
Despite witnessing a capped and rangebound moves,
the session remained technically important
On the expected lines, Nifty resisted the 10,400-10,420 zone and never made any convincing move above these levels
However, it did not saw any selloff from those levels and chose to fiercely consolidate near them.
On Friday, for the Nifty to confirm the
creation of a temporary base, it is important to move past and stay above the 10,400-10,420 zone
While a quiet start to the trade is expected on Friday, the behaviour of the index vis-à-vis these levels will be important to watch
for.
The levels of 10,450 and 10,535 will offer immediate resistance to Nifty on Friday
Supports may come in at 10,330 and 10,250 zones.
The RSI on the daily chart stood at 45.3294 and remained neutral showing no divergence
The daily MACD stayed bullish while trading above its signal line
No significant formation was observed on the candles.
If we consider two previous sessions, Nifty has recovered over 290 points from the
After posting a gain of 188 points, it chose to consolidate in Thursday’s trade.
We expect the index to now consolidate a bit with a
positive bias and attempt to move past the important 10,400-10,420 zone.
If this happens, Nifty might test the 10,600-10,630 levels over the
However, for the present pullback to continue, moving past the 10,400-10,420 zone is critical
Failure to do this will put the index under more consolidation, as Nifty will continue to remain vulnerable to volatile profit taking at
higher levels.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
