INSUBCONTINENT EXCLUSIVE:
The session on Friday remained much rangebound wherein the Nifty oscillated in the 40-point range
It remained in much capped range and gave up some of its gains in the last hour of the trade
the previous week was resilience towards few pockets of global weakness
Another important factor to take note of was the attempts of the Nifty to move past the all critical 10,800-10,850 zones.
As we approach
fresh week beginning Monday, we expect a flat to modestly positive start to the trade
The Nifty has ended just below the falling trend line pattern area resistance and the opening levels and the intraday trajectory that the
markets form after opening will be very crucial to watch for.
Monday will see the levels of 10,800 and 10,850 posing stiff resistance on the
divergence against the price
The Daily MACD still remain bearish while trading below its signal line
No significant formation was observed on Candles.
On the pattern analysis front, the Nifty has almost failed the downward breach that it saw
from a large symmetrical triangle formation
It has shown a sharp pullback inside the formation
Presently it resists once again to the falling trend line that initiates itself form the high of 11,170 and joins the subsequent lower
tops.
Overall, the set remains resilient as the Nifty currently trades above all its moving averages
It presently resists to the falling trend line pattern resistance and it would be important for the Nifty to move past and close above the
10,800-10,850 zones for a resumption of a meaningful upmove
The lead indicators remain within a pattern and are seen forming higher bottoms
Minor corrective moves, if any, should be used to make select purchases while continuing to protect profits at higher levels.
STOCKS TO
WATCH: Resilient technical set up is observed in stocks like Reliance, Ashok Leyland, BEL, Hindalco, BHEL, BPCL, JSW Steel, DLF, RECLTD,
LTFH, and PFC.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
