INSUBCONTINENT EXCLUSIVE:
The equity market extended its upmove on anticipated lines and ended on a positive note
After trading stable for most part of the day, the Nifty saw some paring of gains in between
However, it recovered from the low point and ended the day with a net gain of 49.55 points or 0.45 per cent.
While maintaining a positive
consolidation once again.
The structure of the market remains very much intact and we will see it attempting to mark fresh highs in coming
However, some resistance at the previous high may not be ruled out.
Wednesday is likely to the levels of 11,170 and 11,235 acting as
immediate resistance area for the Nifty
Supports may come in at 11,075 and 11,010 zones.
The Relative Strength Index (RSI) on the daily chart is 67.9207
RSI has marked a fresh 14-period high, which is a bullish sign
The daily MACD stays bullish, as it continues to trade above its signal line
Apart from a small white body, no significant formations were observed on the candles.
Pattern analysis of the Nifty reveals that after
pausing its upmove and remaining in a brief congestion for couple of days, the index has clearly moved out of it
It is set to approach its previous high level of 11,170 wherein it is expected to encounter minor resistance and see some consolidation
happening as well.
Overall, the intent and bias of the market remainis intact.
The positive part of the story is that along with the broader
markets that have stabilised, the sectors such as Infra and metals, among others, which grossly underperformed the market, have also started
to participate.
Any consolidation that occurs at current or higher levels should be continued to make fresh purchases.
Some volatility will
have to be discounted in as we will enter the penultimate day of expiry of current series
Overall, positive outlook is advised for the day.
STOCKS TO WATCH: Technically resilient set -up is observed in stocks of Ashok Leyland,
Hindalco, NCC, Ultratech Cements, Glaxo Consumer, Tata Steel, Tata Power, PTC, FSL, Larsen and Toubro, Arvind and Grasim.
(Milan Vaishnav,
CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
