INSUBCONTINENT EXCLUSIVE:
Equity market on Thursday saw a weak session on the expiry day, as Nifty slipped a notch below its 100-DMA once again
The market opened modestly in the positive, but soon drifted into the negative territory.
For the entire session, the NSE index continued to
remain in a falling trajectory in a sloping channel
Though bulk of the downsides continued to remain infused and caused by expiry, the Nifty ended the day losing 76.25 points or 0.69 per
closing basis.
Though, it has closed a notch below that, it remains within its filter
It would be of paramount importance for the index to crawl back above the 100-DMA
100-DMA by crawling back above it or if it continues getting weaker.
The levels of 11,038 and 11,070 will act as immediate resistance area
Supports may come in at 11,910 and 11,860.
The Relative Strength Index (RSI) on the daily chart stood at 34.3687 and it remained neutral
showing no divergence against the price
critical level to watch.
In all likelihood, there are probabilities that even if the market continues to see weakness, the immediate
previous lows of 10,866 may not be breached and we may see some technical pullback.
The Bollinger bands on the daily charts are now over 71
per cent wider-than-normal and this may not allow any sharp sustainable move to happen on either side.
There are brighter chances that the
market continues to remain in the current range.
We recommend staying away from creating any aggressive positions
While continuing to maintain liquidity, cautious view on the market is advised.
STOCKS TO WATCH: Some resilience may be seen in stocks like
YES Bank, Idea, PNB, Rolta India, SREI Infrastructure, LTFH, Tata Motors, Larsen Toubro, NCC, Ashok Leyland, Tata Steel, Eicher Motors, and
TV18 Broadcast.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
