INSUBCONTINENT EXCLUSIVE:
As expected, the session on Monday headed nowhere, as the market oscillated in a narrow range and ended flat gaining 0.10 points or 0.01 per
The Nifty managed modest gains in the morning, but it pared those gains during the day.
The lower levels too did not sustain and the index
ended largely unchanged from the previous levels
Karnataka election results
It is likely to instil volatility in the market
Speaking on technical lines, even though the market is expected to defend levels of 10,785, some volatile moves and oscillations in a
defined range cannot be ruled out before it resumes uptrend
Presently, it continues to remain under consolidation.
Tuesday will see the levels of 10,830 and 10,895 acting as immediate resistance area
Supports may come in at 10,750 and 10,705 zones
Given the likelihood of volatility, the potential range for the market remains wider than usual.
The Relative Strength Index (RSI) on the
daily charts stand at 67.4864
It continues to show bearish divergence against the price
The daily MACD stays bullish, as it trades above its signal line
This is typically a session with very small real body, which signifies indecisiveness of market participants.
The pattern analysis shows
that the Nifty attempted to inch higher after a brief period of consolidation
It broke out of a rectangle range, marked a high of 10,785, and since then it has been consolidating in a much capped range
Though a breakout has been attempted from this congestion zone, a confirmation is awaited.
All in all, we once again expect a tepid start to
clarity on Karnataka election results.
A hung assembly already seems discounted, however, a volatile reaction is likely in the event of
results turning out in favour of or against the BJP.
We recommend remaining light and moderate on overall positions and adopt highly stock
Though shorts may be avoided, fresh purchases may be kept highly selective in nature.
A cautious view on the market is advised for
Tuesday.
STOCKS TO WATCH: Short positions were seen being added in stocks like Ashok Leyland, Tata Motors, Tata Global, PFC, Adani Ports,
Nalco, Reliance Power, PTC, BHEL, NCC, Bharti Airtel and SAIL.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity
Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
