INSUBCONTINENT EXCLUSIVE:
The penultimate day of the expiry of the current derivative series saw the Nifty50 oscillating in an 80-point range
Stocks made a modestly negative opening and got weaker in the early trade
However, a sharp recovery followed, and after a ranged oscillation, the Nifty ended 18.95 points or 0.18 per cent lower.
For Thursday, we
expect the market to trade in the similar range
The supports are likely to come in near 100-DMA level, which stands at 10,544
The market may face resistance near 10,650-10,680 zones.
The amount of shorts that still exists in the system is likely to come into play,
as the session is expected to remain dominated with rollover centric activities
Thursday will see the levels of 10,650 and 10,680 playing out as immediate resistance areas
on the daily chart is 50.6014
RSI continues to stay neutral showing no divergence against the price
Daily MACD stays bearish while trading below its signal line
No significant formations were seen on the candles.
Pattern analysis shows that two important levels may come into the picture
First is the 100-DMA level, which may come into play as Nifty50 took support at this level in the previous session
Second, on the upper side, 10,650 level, which happens to be the multiple pattern resistance
The level may pose resistance in event of resumption of the pullback.
Overall, there are a significant number of shorts that were seen being
added and they still continue to exist
We expect a quiet opening to the trade and a rangebound movements in the early part of the session
However, there are chances that the market sees sharp moves, as some short covering might happen.
The primary reason for this is the though
the month of May continued to see addition of shorts, the month of June have been witnessing long rollovers
We recommend a cautious but positive view on the market for the day.
STOCKS TO WATCH: Favourable technical setup is observed in stocks like
IDBI Bank, Indosolar, LT Foods, Coal India, Bliss GVK Pharma, Cummins India, Kitex and Astrazeneca Pharma.
(Milan Vaishnav, CMT, MSTA is
Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
