INSUBCONTINENT EXCLUSIVE:
Rising for the fifth day in a row, NSE benchmark Nifty, ended Wednesday’s session with a minor gain of 14.90 points or 0.14 per
cent.
Market exhibited positive intent, as it recovered from the low point of the day
However, it continued see resistance near the 50-DMA and 100-DMA levels, which remain in close vicinity.
On Thursday, approach the market
with caution despite the fact that there is very evident positive undercurrent
The 50-DMA and 100-DMA levels, which stand at 10,425 and 10,440, respectively, will continue to resist the market on a closing basis.
The
levels of 10,440 and 10,495 will act as immediate resistance area
Supports will come in at 10,380 and 10,320 zones.
The Relative Strength Index (RSI) on the daily chart is 56.4564, and it has marked a yet
another 14-period high, which is bullish
It continues to remain neutral showing no divergence against the price.
The daily MACD remains bullish, while it trades above its signal
On the candles, a Hanging Man pattern was formed
With such formation occurring during an upmove, it raises some caution at the current levels
It has a potential to temporarily stall the rally.
While having a look at pattern analysis, though the market continues to remain comfort
zone, it facing short-term resistance as well.
The levels of 50-DMA and 100-DMA, which remain in close vicinity to each other, are likely to
cause short-term resistance area.
Overall, the market has continued to exhibit a strong undercurrent
It has continued to add open interest with each minor upmove
However, it also faces as major pattern resistance at 50-DMA and 100-DMA levels
Though we may not see any significant downside, the market certainly remains prone to volatile profit taking bouts at higher levels.
We
continue to advise protecting profits at higher levels
There are higher chances that even if the market continues with its upmove, it might face some rangebound consolidation at higher levels
Positive caution is advised for the day.
STOCKS TO WATCH: Fresh long positions were seen being added JP Associates, Nalco, TV18 Broadcast,
Vedanta, Sun Pharma, IDFC, Reliance, BHEL, Infibeam and Coal India.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone
Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
