Market outlook: Despite Monday’s damage Nifty to show positive bias

Pattern analysis shows the Nifty still continues to trade comfortably in the upward rising channel where it has been trading over the past couple of months. NSEBSETata ElxsiLoading data…

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    ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESJamna AutoLoading data…

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      ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESITCLoading data…

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        ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESIOCLoading data…

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          ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESDish TVLoading data…

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            ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESDB CorpLoading data…

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              ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESCoal IndiaLoading data…

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                ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESIOCDish TVDB CorpCoal IndiaEXPAND TO VIEW ALL Amid fresh geopolitical tensions, the benchmark Nifty50 had a negative session on Monday, as it ended with a 61.55 points, or 0.62 per cent loss. Despite the developments and news flow that the global markets digested, it is important to note that even after Monday’s decline, there is no structural damage to the charts.

                On Tuesday, we expect a quiet start to the market and in the absence of any negative news flow, the favourable technical conditions are likely to take over and the market is likely to trade with a positive bias.

                The 9,975 and 10,030 levels will play out as likely resistance on Tuesday. Supports should come in at 9,860 and 9,835 levels.

                The Relative Strength Index or RSI on the daily chart stood at 52.3607 and it remained neutral showing no divergence against the price. The daily MACD continued to remain bullish, as it traded above the signal line. Though an engulfing bearish line has occurred on candles, given the place for its formation, it holds little or no significance in the current scenario.

                Pattern analysis shows the Nifty still continues to trade comfortably in the upward rising channel where it has been trading over the past couple of months. There is no structural trigger that points towards any major movement on either side.

                If we have a broader view, the Nifty not only trades above its 50-DMA, 100-DMA and 200-DMA, but also above the short-term 20-DMA. This reading is enough to conclude that there are no triggers at present that triggers any major downsides. The 50-DMA level along with its filter continues to remain a major support to bank upon in the event of the market consolidating. We expect the market to remain extremely stock specific and expect select outperformance from the broader indices. While strictly avoiding shorts, cautious optimism is advised for Tuesday’s session.

                STOCKS TO WATCH
                Some shorts got added on the counters of REC, IOC, ITC Dish TV and PFC. Stocks like Tata Elxsi, Jamna Auto, Bosch, Coal India, DB Corp and Apollo Hospital have ended with buoyant setups and we can expect a resilient show from them on Tuesday.

                (Milan Vaishnav, CMT, is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. Contentions made in this article are mere observations. Investors should consult their financial advisers before taking any positions based on these remarks. Views expressed are the author’s own do not represent those of ETMarkets.com. The author can be reached at milan.vaishnav@equityresearch.asia)

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