INSUBCONTINENT EXCLUSIVE:
By Nagraj ShettiWhere are we Choppy trend continued in the market last week and the Nifty closed the week on a minor positive note
The index is currently facing resistance from the down sloping trend line as per daily and weekly time frame chart, which is currently
placed around 10,800-10,820 levels
Though the Nifty moved up by forming higher highs in the past seven sessions, we observe a formation of overlapping candles as per daily
This is indicating a range bound movement, and lack of strength in the upside momentum in the Nifty.
What is in store Nifty, as per weekly
time frame chart, has been moving in a broader range
The formation of long lower shadow in the recent weekly candles, is signaling emergence of buying interest from the lows
The presence of key overhead resistance at the highs, and an emergence of buying from the lows has resulted in a range-bound action in the
Nifty, over the past several weeks
Either the absence of lower levels buying or an upside breakout of the overhead resistance could bring renewed momentum in the market on
either side.
What could investors do The underlying trend of Nifty remains choppy with minor positive bias
Still there is no indication of range breakout on either side
A sustained move above the hurdle of 10,850 levels could have a sharp positive impact on the market ahead
Sectorally, FMCG, IT, pharma and automobile are expected to outperform in near term and metal, realty and infra sectors are expected to
underperform or move in a range for the coming weeks.
(Technical research analyst, HDFC securities)
