INSUBCONTINENT EXCLUSIVE:
It was widely expected that Nifty may not see any runaway rally on Friday after the sharp short covering bounce it witnessed in the expiry
session on Thursday.
On the expected lines, the last session of the week saw the Nifty opening modestly in the green and spending rest of
the session in a falling trajectory
The index ended with a loss of 39.95 points or 0.37 per cent.
As we approach the new week, we expect Nifty to see a modestly positive
The index may also not see any major directional moves on either side
It is likely to trade in a capped range with upsides finding resistance at higher levels.
Some amount of consolidation is now expected to
creep in and persist for some time
Monday is likely to see the levels of 10,765 and 10,790 playing out as resistance areas
Supports may come in at 10,650 and 10,605 levels.
The Relative Strength Index (RSI) on the daily chart is 54.9419
RSI remains neutral and it shows no divergence against the price
Daily MACD continues to remain bearish while trading below its signal line
No significant formations were observed on the candles.
If we go by pattern analysis, it shows that the Nifty attempted to break out of the
broad trading range that it has formed over past couple of months
However, post an attempted breakout, it is witnessing some throwback
If 10,600-10,630 zones do not lend any immediate pattern support, it may see some more weakness creeping in.
Overall, the Nifty has taken
support at its short term 20-DMA, which is at 10,665
Any breach of this level at close will again push the market into more consolidation and minor corrective phase.
Speaking purely on
will influence a sharp move in the market.
We recommend remaining very stock specific and chasing momentum in a selective manner while
keeping overall exposures at modest levels.
STOCKS TO WATCH: Long positions were seen being added in stocks of ICICI Bank, Tata Motors, PFC,
Ashok Leyland, Reliance, Hindalco, TVS Motors, Equitas, Engineers India, Ujjivan, HDFC and Larsen Toubro.
(Milan Vaishnav, CMT, MSTA is
Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
