INSUBCONTINENT EXCLUSIVE:
The equity market had a buoyant start to the week, as NSE benchmark Nifty ended the day with a gain of 80.25 points or 0.74 per cent
back from a large symmetrical triangle formation
A modestly positive start to the session is expected, and even if market consolidates at higher levels, it will do so with a positive
bias.
The levels of 10,875 and 10,930 will play out as immediate resistance levels for Tuesday
Supports may come in at 10,810 and 10,760 zones.
The Relative Strength Index (RSI) on the daily chart is 58.5325
It does not show any divergence against the price, but it has marked a fresh 14-period high, which is bullish.
Daily MACD has also shown a
It is now bullish, as it trades above its signal line.
If we look at the pattern analysis, it suggests that the Nifty has finally attempted
to move past the falling trend line pattern resistance
This falling trend line started from the high of 11,170 and joined the subsequent lower tops
If the market manages to hold itself up above the 10,850 mark, we will see higher chances of this culminating into a breakout with the Nifty
Some technical indicators remain slightly overstretched, which might make the market consolidate at higher levels
Still, the underlying current remains bullish.
The Bollinger bands remain nearly 48 per cent narrower-than-normal
This further increases the chances of volatility increasing with sharp moves in prices over the coming days.
Even if Nifty consolidates at
the higher levels, we would strongly recommend refraining from creating shorts as long as the Nifty stays above the 10,800 mark.
Continue to
make select purchases with each consolidation
Overall, a positive outlook is advised for the day.
STOCKS TO WATCH: Fresh long positions were seen being built in stocks like Asian Paints,
YES Bank, Vedanta, Hindustan Zinc, Reliance, Tech Mahindra, Sun Pharma, Larsen Toubro, Bajaj Finserv and Kotak Bank.
(Milan Vaishnav, CMT,
MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
