Market outlook: Nifty readying for decisive move on either side

The relative strength index or RSI on the daily chart stood at 53.4201 and it remained neutral showing no divergences against the price. NSEBSEMirza InternationalLoading data…

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    ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESLiberty ShoesLoading data…

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      ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESKajaria CeramicsLoading data…

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        ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESAshok LeylandLoading data…

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          ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESAshok LeylandEXPAND TO VIEW ALL The domestic market had a relatively quiet session on Friday. After opening on a higher note, it remained in a range and ended the day with a modest gain of 4.90 points, or 0.05 per cent. The benchmark Nifty50 has continued to consolidate and remained in a stiff congestion area.

          On Monday, we expect a modestly positive start to the market. It is important to note that the Nifty50 has added a lot of short positions over the past couple of days. Further, given the fact that the Nifty50 has been trading in a congestion area for a long time, it is likely that the index will make a decisive move on either side in the coming days.

          The 9,930 and 10,060 levels will act as immediate resistance for Nifty50 while supports will come in at 9,905 and 9,850 levels.

          The relative strength index or RSI on the daily chart stood at 53.4201 and it remained neutral showing no divergences against the price. The daily MACD still continued to remain bullish, as it traded above the signal line. No significant formations were observed on the candles. Pattern analysis showed the Nifty was trading well within the rising channel it has formed over the past couple of months.

          However, a stiff congestion area has been formed and there are indications that index is likely to make a sharp decisive move over the coming days. As of today, the index continues to trade above all its moving averages. Further, there is evidence of fresh shorts in the system as the premium in the September series contracted noticeably.

          While the index currently above all its moving averages and no evidence of any structural weakness was seen on the charts, there are bright chances that the market will maintain a positive bias in the coming days. We continue to recommend making select purchases with every corrective move.

          STOCKS TO WATCH

          JSW Energy, Ashok Leyland, Biocon, Mirza International, Liberty Shoes, Kajaria Ceramics have seen buoyant setups and are likely to trade with a positive bias on Monday.

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