INSUBCONTINENT EXCLUSIVE:
In a capped, but volatile session on Friday, the NSE benchmark Nifty attempted to move out and keep its head above the 10,600-10,650 zone
After opening on a positive note, the Nifty marked its intraday high of 10,695 in the late morning session
Thereafter, Nifty spent the entire day in a 40-point range, while making no major headway
Though no significant upsides were seen, the market stayed above the 10,650 mark and ended with a gain of 65.50 points or 0.62 per cent.
We
enter once again into a truncated week with Friday being a trading holiday
The market remains at an important juncture
If Nifty can extend its upmove, we will then see the index approaching the 10,750-10,755 zone, which is the confluence area of different
Any slip below 10,650 will again see the Nifty being pushed into consolidation again
The zones of 10,600-10,650 continues to remain important.
Monday is likely to see the levels of 10,730 and 10,760 acting as immediate
Supports may come in at 10,610 and 10,550.
The Relative Strength Index (RSI) on the daily chart stood at 56.5863 and it has marked a fresh
14-period high, which is bullish
The Daily MACD is bullish while trading above its signal line.
Pattern analysis suggested that as Nifty has moved above the 10,650-mark,
along with this, it has also attempted to move beyond the falling trend line resistance.
If Nifty can extend its upmove, it will then see
itself approaching the the 200-DMA, which is at 10754
This is also the area, which is the confluence point of 50-DMA, which is at 10,750.
So, an extension of the upmove, if any, will see the
Nifty approaching this multiple resistance points going ahead
Any move below the 10,600-10,650 mark will push the market into consolidation again.
We recommend continuing with protecting profits at
higher levels while maintaining a cautious view on the market
Highly selective approach is advised for the day.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research
Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
