INSUBCONTINENT EXCLUSIVE:
The market remained in a capped range and after oscillating in a defined range, the benchmark index Nifty50 ended the day posting negligible
loss of 4.30 points or 0.04 per cent
before the index attempts to test its previous high.
Monday is likely to once again see a quiet and uneventful start to the trade
There are no negatively affecting global triggers and technically speaking, given the slightly overstretched indicators on the Daily Charts,
some consolidation might continue.
We expect the week to begin with a rangebound trade with the Nifty expected to oscillate in a defined
The corrective downsides, if any, may remain limited
The levels of 11,078 and 11,170 will act as immediate resistance area while supports should come in at 10,980 and 10,910 zone.
The Relative
The Daily MACD stays bullish while trading above its signal line
No significant formations were seen on Candles.
If we look at pattern analysis, the Nifty has broken out from a falling trend line
resistance which began from 11,170 and subsequently joint lower tops
Post the breakout and recent upmove, Nifty is seen taking a likely breather and this might result into some consolidation before it gathers
strength to inch higher.
Overall, the general setup continues to remain bullish, but we might see Nifty stalling its upmove for some more
However, we recommend continuing making select purchases with each opportunity that any consolidation offers while also continuing to
protect profits at higher levels
Shorts may be avoided as we might see Nifty attempting to test its previous high over coming days
Positive outlook is advised for the day.
STOCKS TO WATCH: Shorts were seen being added in stocks like NCC, ITC, UPL, Jindal Steel, Tata
Power, PNB, South Indian Bank, BEL, Adani Ports, ONGC, Bank OF India, SAIL, Federal Bank and Nalco.
(Milan Vaishnav, CMT, MSTA is Consultant
Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
