INSUBCONTINENT EXCLUSIVE:
The market saw a modestly positive start, but slipped later
The Nifty has been consolidating near its pattern resistance area
For Monday and for the coming sessions, it would be imperative for the index to move past the 10,820-10,850 zones for resumption of any
Monday is likely to see the levels of 10,850 and 10,895 acting as immediate resistance area
Supports may come in at 10,765 and 10,710 zones.
The Relative Strength Index (RSI) on the daily chart is 59.3764, and it remains neutral
showing no divergence against the price
The daily MACD stays bullish while trading above its signal line.
A candle with a long lower shadow occurred on the charts, and in the
present context it holds little significance, as it has occurred during an upside
However, since it has also occurred after some consolidation, it offers mild possibilities of fresh attempt by Nifty for an upmove.
Going by
the pattern analysis, Nifty has continued to resist the falling trend line that began from 11,170 and then subsequently joined the lower
It would be critically important for Nifty to move past the 10,820-10,850 zone for resumption of any meaningful upmove.
Overall, the
undercurrent continues to remain buoyant and the FO data suggests that Nifty has some more steam left and it may attempt to move past the
pattern resistance area near which it is currently consolidating.
However, until the levels of 10,820-10,850 are breached on the upside, we
recommend caution at higher levels and to guard profits with each upmove
Overall, positive caution is advised for the day.
STOCKS TO WATCH: Long positions were seen being added in Reliance, Wipro, Infosys, Bajaj
Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
