INSUBCONTINENT EXCLUSIVE:
The equity market on Tuesday saw a better-than-expected pullback despite the initial weakness and ended with decent gains
The market after a negative opening, spent the morning session in a range, with modest losses.
However, from afternoon onwards, Nifty
gathered strength and settled 100.30 points or 0.96 per cent higher
The pullback was on account of short covering from the lower levels
Also, Nifty stalled its rally near the important 10,600 mark, which also is its falling trendline resistance area.
As we approach the
Wednesday’s session, it will once again be important for the index to attempt and navigate the 10,600-10,650 zone, which is very much
likely to pose resistance going ahead.
The upcoming session is likely to see stiff resistance coming in at 10,650 and 10,690 levels for
Supports may come in at 10,550 and 10,510 zone.
The Relative Strength Index (RSI) on the daily chart stood at 52.2530 and it stayed neutral
against the price showing no divergence
The daily MACD stayed bullish while trading above its signal line
No significant formations were seen on the candles.
Overall, despite the strong pullback, the market remains in a broad falling channel,
which Nifty has created for itself over past couple of weeks.
For Nifty to move out of this falling channel, it will be important for the
index to move past the 10,600-10,650 zone and sustain above that.
On broader terms, market is still are not completely out of the woods and
there are chances that we continue to witness more consolidation at higher levels.
Nifty stares at multiple overhead resistance going ahead
and some volatility at higher levels cannot be ruled out
We recommend maintaining a cautious view on the Markets for the day.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone
Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
