INSUBCONTINENT EXCLUSIVE:
In the previous market note, a possibility of a breakdown was mentioned, if the Nifty were not to hold the 50-DMA level on a closing basis
cent.
The session majorly remained less volatile given the fact that it was the last day of the June derivatives series.
As we step into
The nearest support that is seen is at 100-DMA, which stands at 10,530
It would be important to see if this remains sacrosanct and is respected by Nifty
Friday is likely to see the levels of 10,630 and 10,655 acting as resistance at higher levels
Supports may come in at 10,530 and 10,480 zones.
The Relative Strength Index (RSI) on the daily chart is 41.1590 and it has gone on to mark
a fresh 14-period low, which is bearish
It shows no divergence against the price
The daily MACD stays bearish while trading below its signal line
No major formations were observed on the candles.
Going by the pattern analysis, it is now pretty evident that the Nifty as of now has
failed to navigate and move past the pattern resistance of the falling trend line
Moreover, the Nifty has shown a downward breakdown from the large symmetrical triangle formation
Overall, we might see Nifty attempting to gain some stability, but the current break of the pattern formation has made one point clear --
going ahead is not likely to be smooth for the Nifty
We recommend paring exposure in high beta stocks and returning to largecaps that offer more safety moving forward
It is advised to take extremely cautious view on the market and avoid major exposures while remaining highly selective in approach towards
any fresh purchases.
STOCKS TO WATCH: Relatively resilient technical set up was observed in stocks of CG Power, PNB, Nalco, NTPC, Adani
Ports, NBCC, Larsen Toubro, JSW Energy and LT Foods.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research
Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
