INSUBCONTINENT EXCLUSIVE:
Nifty continued to consolidate for the second day in a row on Tuesday, as it oscillated in a capped range before ending the session flat
After opening on a positive note and maintaining modest gains for the most part of the session, the index slipped into the red and spent the
last hour and a half trading around the previous close
Nifty finally settled flat, posting a negligible gain of 6 points or 0.06 per cent.
Stock exchanges will hold one-hour Mahurat Trading on
Wednesday on the occasion of Diwali
Such sessions obviously see lower volumes and tend to be rangebound
discounted and Thursday being a trading holiday, there is only one full trading day left this week
Given this set-up, the market is likely to continue rangebound trade and move with caution with no major directional bias.
A cursory glance
on the technical charts shows RSI stood at 50.5099 on the daily chart and remained neutral showing no divergence from price
The daily MACD remained bullish as it traded above the signal line
No major formations were observed on the candles.
Broadly speaking, Nifty has formed a broad trading range for itself and given the lower
tops and bottoms that it has formed in the last few months, the 10,600-10,700 zone should remain an important resistance that Nifty will
have to deal with.
We expect a stable start to the short Mahurat Session and rangebound trade with token purchases on select
counters.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
