INSUBCONTINENT EXCLUSIVE:
However, the second half of the session saw the shares gaining strength and attempted to break out of the consolidation zone it created
It ended a notch above the 10,785-mark, gaining 89.95 points or 0.84 per cent.
As we step into the fresh week, we have political event of
Karnataka election results which is likely to effect the market and along with this, it will also infuse some volatility in the trade
With various opinion polls predicting a hung assembly in Karnataka, we might see a tepid start to the trade
In any event, with the breakout not yet been confirmed, the levels of 10,785 still continues to remain critical levels to watch for.
Monday
is likely to see 10,835 and 10,880 acting as immediate resistance area for the Nifty50 index
It shows a bearish divergence as while Nifty marked a fresh 14-period high, RSI did not do so
Daily MACD stays bullish while trading above it signal line
A white body occurred on Candles and apart from this, no significant formations were observed.
Pattern analysis shows that after breaking
out of the rectangle formation, the Nifty suffered a minor throwback after marking high of 10,785
After a brief consolidation, the index has attempted to move past 10,785-mark
However, a confirmation to this attempted breakout is awaited.
Overall, apart from the political event of Karnataka election results that is
likely to infuse volatility in to the market, the 10,785 continues to remain critical levels to watch for
Unless the 10,785-level is breached on the upside, market may continue to remain under consolidation
Internal technicals suggest strength and more likelihood of Nifty inching higher
We continue to recommend making selective purchases with any opportunity that expected volatility might offer
Though cautious, positive outlook is advised for the day
However, until the results come out next week, we might see tentative approach prevailing in the market.
STOCKS TO WATCH: Good technical set
up is observed in stocks like Vedanta, YES Bank, Hindustan Zinc, CG Power, Nalco, Petronet, Larsen Toubro, Petronet LNG, Capital First and
Bharat Financial.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research Advisory Services, Vadodara
He can be reached at milan.vaishnav@equityresearch.asia)
