INSUBCONTINENT EXCLUSIVE:
Authors: TheIndianSubcontinent News AgencyThe domestic equity market continued to bounce and stepped into the new week on a buoyant note
Tuesday was a trading holiday on account of Maharashtra Day.
Speaking from a global perspective, Tuesday was largely uneventful
session, Dalal Street should see a quiet start and the market may show modest strength in early trade with the possibility of some
consolidation.
The 10,750 and 10,805 levels should act as immediate resistance for the Nifty50, while supports should come in at 10,675 and
10,620 levels.
The relative strength index or RSI on the daily chart stood at 69.97 and it has marked yet another 14-period high
This indicates continuation of the buoyant undercurrent
The RSI remains neutral, showing no divergence from price
The daily MACD continues to be bullish, above its signal line
On the candles, a white body has occurred
This implies continuation of the ongoing bounce
Apart from this, no significant formations were observed on the candles.
Pattern analysis suggests the Nifty has tested the upper range of
the rectangle formation for sometime before breaking out
Though this remains prone to some throwbacks, a breakout above the 10,500 mark is a distinct possibility.
Overall, there are no major
triggers that can influence any sharp movement in the market on either side on Wednesday
The Nifty50 may attempt to inch higher
However, the market is very close to the overbought territory and remains prone to some consolidation at higher levels.
The Bollinger bands
are getting wider-than-its normal range
Also, volatility has been at its lowest levels in the recent past
All this may push the market into consolidation and keep it within a range.
Stock-specific actions will dominate the session
Investors should remain stock specific and guard profits at higher levels.
STOCKS TO WATCH:Good technical setup was observed in stocks like
First Source, IRB Infra, Vedanta, Nalco, Canara Bank, IndianOil, Jet Airways, Tata Steel, NCC, CG Power and BHEL.
(Milan Vaishnav, CMT, MSTA
is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
