INSUBCONTINENT EXCLUSIVE:
Thursday's session on Dalal Street was important from a technical perspective, and domestic equities continued to correct from higher levels
to end the day on a negative note
After a flat start, Nifty inched higher and traded with modest gains by afternoon
However, the second half of the session saw the index pare its gains
Nifty came off the high point, slipped into the red and went on to end near the low point of the day
The session saw the headline index ended with a modest loss of 45.05
points, or 0.37 per cent.
On Monday, Nifty will open after a long
weekend as Friday was a trading holiday on account of Mahashivratri
The market will see a tepid start to the session as it adjusts to Friday's trends in global markets
Apart from that, Nifty has faced resistance in the falling trend line that joins the lower top, drawn from the high of 12,430 level
The index has also faced resistance at its 50-DMA, which currently stands at 12,141.
On Monday, Nifty will face resistance at 12,105 and
12,140 levels, while supports will come in at 12,040 and 12,000 levels.
The Relative Strength Index (RSI) on the daily chart stands at
49.65; it continues to stay neutral without showing any divergence against price
While the daily MACD remains bullish and trades above the signal line, the deceleration of momentum is evident from the slope of the
Apart from a Black Body that emerged on the candles, no other formations were noticed
The validation is evident as Nifty faced resistance at the falling trend line that begins from the high of 12,430 and subsequently joins the
Nifty also faces resistance at its 50-DMA on a closing basis
There are increased possibilities of Nifty testing its short-term 20-DMA, which is currently placed at 12,042
In the event of any incremental weakness, Nifty would be prone to violating a few crucial levels on the weekly charts
On the other side, all up-moves, if any, are likely to get sold into; and no meaningful upsides will be seen unless Nifty moves past the
12,230 level convincingly
While continuing to utilize all technical pullbacks to protect profit, a cautious view is advised for the day.
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
