INSUBCONTINENT EXCLUSIVE:
The domestic equity market ended the day on a flat note despite a weak opening
After the interest rate hike by the Federal Reserve, the US markets suffered losses and this overnight global weakness percolated to early
Asian trade as well, including the Indian market, that saw a negative opening today.
Market, however, pared most of its losses and
eventually settled 15.60 points lower at 10,951.70
The level of 100-DMA, which is presently at 10,936, assumes great importance now
The Nifty index recovered to end the day with a minor loss, but it has rested on the 100-DMA.
Friday may see a stable opening and the
intraday trajectory of the market will be important to watch
Moreover, the behavior of the market against the 100-DMA will remain an important thing to be observed
The levels of 10,990 and 11,045 will act as immediate resistances, whereas key supports may come in at 11,930 and 11,860.
The Relative
Strength Index (RSI) on the daily chart is 60.9693 and it remains neutral against the price
Daily MACD remains bullish as it is above its signal line
Apart from a white body that emerged, no significant formations are seen on candles
From pattern analysis, it is evident that the Nifty has managed to cross the falling trend line pattern resistance
This pattern resistance is in the form of a trend line that joins the high of 11,760 with subsequent lower tops
Though Nifty has managed to cross it, it has halted its upward movement near its 100-DMA
The short-term indicators on the daily chart remain slightly overstretched and Nifty continues to stare at some possible consolidation
Given the underlying strength in the market, such consolidation may not result into any significant downsides, but the market continues to
remain vulnerable to profit booking at higher levels
Stay cautious and adopt a highly stock specific approach 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)
