INSUBCONTINENT EXCLUSIVE:
The domestic stock market fell for a fourth straight session on Tuesday despite staging a smart recovery in the later half of the day
NSE Nifty opened on a negative note and slipped below the crucial 100-DMA level at 11,942 in intraday trade
headline index now trades well below its lower top that it marked near the 12,250 level
It has also violated 50-DMA and short-term 20-DMA, which stand at 12,135 and 12,053, respectively
Nifty, however, bounced off from the pattern support of the broadening formation, and has held on the 100-DMA support, which is at
The 12,050 and 12,065 levels will act as resistance, while support may come in at 11,950 and 11,905.
The Relative Strength Index (RSI) on
the daily chart stood at 45.48 and continued to remain neutral, showing no divergence against the price
The daily MACD was bullish and traded above its signal line
However, the indicator is set to report a negative crossover, as the slope of the Histogram has sharply narrowed over the past couple of
However, it is important, as it has emerged near the strong pattern support area.
The market is expected to get some respite from the
However, it may not see any significant upmove, and may consolidate between 100-DMA and 50-DMA levels.
In the event of an upmove, it would
be prudent not to get carried away, and instead, such moves should be used to protect profits.
On the lower side, the 100-DMA level, which
is at 11,942, will be a crucial support to watch out for in the coming session.
A cautious view is advised, as despite a likely technical
pullback, the broader outlook remains negative.
(Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of Gemstone Equity
Research - Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
