INSUBCONTINENT EXCLUSIVE:
Recovering from the heavy battering in the previous session on Saturday, the domestic stock market managed to end mildly in the green
NSE Nifty as expected took support at its 200-DMA, which is at 11,655, on Monday
After trading in a broad range, the headline index ended with a modest gain of 46.05 points or 0.39 per cent at 11,707.90.
The analysis for
Nifty has held on to its support at 200-DMA, which will be key for the market in the short term
The index is expected to consolidate with its upside range at 100-DMA, which is at 11,747.
After two sessions, the market is expected to see
a relatively stable start on Tuesday, with 11,740 and 11,795 levels acting as resistance
Support may come in at 11,665 and 11,630.
The Relative Strength Index (RSI) on the daily chart was 32.86 and stayed neutral, showing no
divergence against the price.
ETMarkets.comThe daily MACD was bearish and traded below its signal line
A small white body was formed on the candles
However, since it emerged near the 200-DMA, it has attempted to validate this level as a potential near-term support.
As per pattern
analysis, Nifty has broken down from the broadening formation, and has taken support at 200-DMA at 11,655
This support will be crucial in the immediate term
If the index slips below 200-DMA, it may invite more weakness.
All in all, the market is done reacting to Budget 2020
However, for this to continue, holding on to 200-DMA will be crucial.
We would recommend traders to use declines, if any, to make fresh
However, it will also be important to stay stock specific and avoid aggressive positions
A cautiously positive approach is advised for the day.
(Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of Gemstone
Equity Research - Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
