INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Friday witnessed a relatively stable session and the market remained buoyant despite being slightly over-extended on higher time
The Nifty opened higher and spent the entire session trading in a narrow 25-odd points range
Finally, the benchmark index ended the day gaining 85.70 points or 0.75 per cent.
As we approach the coming week, which again remains a
truncated one, we expect a quiet start to the trade
Global environment is stable, and we expect the calm to remain in our domestic markets as well
We may also see a modestly positive start but at the same time, we need to exercise even more caution as we are dealing with over-extended
and overbought market on the higher time frame charts at current time.
Monday is likely to see the levels of 11,495 and 11,550 posing
The supports will come in lower at 11,420 and 11,375 zones
The Daily MACD stays bearish while trading below its signal line
On Candles, a small white body occurred
The smaller size of body usually indicates little intraday price action and depicts an indecisive intent of the market participants.
Pattern
analysis shows the market remains firmly in uptrend after confirming a breakout from its previous lifetime high of 11,170-11,175 zones
Presently, it is seen consolidating in a defined range while it gathers strength of another phase of an upmove.
Despite strong undercurrent,
the Nifty is lightly overbought and over-extended on the higher time frame charts
This may lead us to either consolidate at current levels or may lead to sporadic and volatile profit taking bouts at higher levels in the
We continue to expect the market to remain vulnerable at higher levels with minor profit taking bouts
We, therefore, continue to recommend not to chase momentum blindly and remain stock specific in approach
While guarding profits at higher levels, cautious view on the market is advised for the day.
Stocks to watch:Resilient behavior is expected
from the stocks like GAIL, PNB, YES Bank, Reliance, Ashok Leyland, Axis Bank, Indian Hotels, IDBI Bank, NBCC, Tata Steel, NCC, Cadila and
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
