INSUBCONTINENT EXCLUSIVE:
After initial hiccups and struggle in the first hour of the trade, the Nifty managed to move past its 50-DMA and ended above it
The session remained much volatile, more so in the first half, wherein the market oscillated in a 50-point range, but headed nowhere in a
After struggling below the 50-DMA, the Nifty finally moved past it in the second half
The index ended the day gaining 57 points (+0.54 per cent).
Wednesday is likely to see a quiet start to the day and inching higher will not
be an easy task for Nifty
The zone of 10,644, the 50-DMA, and 10,741, the 200-DMA, is likely to remain a little turbulent for the market
In a way, the Nifty remains in the no-trade zone.
We enter the penultimate day of the expiry of the current derivative series and we will
see the session remaining dominated with rollovers
The amount of volatility we are seeing will increase if the Nifty fails to make any decisive move ahead
The levels of 10,740 and 10,785 will act as immediate resistance for the market while supports come in at 10,640 and 10,580
Given the likelihood of increased volatility, the range has become wider for the index.
The Daily RSI is 54.9644 and it remains neutral
showing no divergence against the price
The Daily MACD remains bullish while trading above its signal line
Apart from the white candle that emerged, no significant formations were observed.
By continuing its upmove on Tuesday, the Nifty has
averted weakness that would have otherwise crept in
There was a possibility of the index slipping back inside the falling channel and that would have meant some prolonged weakness in the near
term.
All and all, there are chances that the market may continue with its attempt to extend the upmove
However, the zone between 50-DMA and 100-DMA is likely to remain turbulent
Also, the upmoves in the previous two sessions have come with a weaker market breadth, which remains a cause of worry
We suggest continuing to protect profits at higher levels and adopt highly stock-specific and selective approach on the market.
(Milan
Vaishnav, CMT, MSTA, is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)