INSUBCONTINENT EXCLUSIVE:
Stock market traded lacklustre on Thursday -- barring an recovery attempt in the last half hour of the trade -- despite being the day of
expiry of current derivative series.
The NSE benchmark Nifty50 oscillated in a 40-point range throughout the day
Except for the FMCG and Pharma packs, rest of the indices showed no major moves on either sides
The corrective undertone is likely to persist, as the market may see some more consolidation, which may occur with limited downsides.
The
level of 11,760, which is the immediate previous high, is now an intermediate temporary top for Nifty.
Friday will see the levels 11,710 and
11,760 acting as immediate technical resistance area
The supports may come in lower at 11,610 and 11,560 zones.
The Relative Strength Index (RSI) on the daily chart is 69.3640 and it has just
moved below from a topping formation, which is bearish
It remained neutral to the price and showed no divergence.
The daily MACD is bullish while it stayed above its signal line
On the candle, a spinning top occurred, which continued to show that the indecisive approach of the participants.
Overall, there is no
second doubts over the present bull trend remaining intact
In fact, the refusal of the market to correct is a show of internal strength.
However, given the overextended structure on the charts, there
are still some more room for consolidation
We may see the market consolidating with the levels of 11,760 acting as immediate technical resistance.
Near these levels, the market may
continue to remain vulnerable to profit taking, but the downsides, if any, are likely to remain limited.
We recommend refraining from
creating any major exposures on either sides unless the consolidation phase is seen ending
While remaining light on exposures, cautious approach is advised for the day.
STOCKS TO WATCH: Long positions were seen being added in
stocks like Idea, PNB, ICICI Bank, IDFC, IDFC Bank, SAIL, NCC, Federal Bank, PTC, Bank of Baroda, Nalco, Tata Steel, Jain Irrigation, ONGC
and Vedanta.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
