Market outlook: Nifty50 placed in a rising channel, to keep positive bias




We expect a positive start on Monday and despite some possible consolidation at higher levels, we expect the market to maintain the overall positive bias. NSEBSETata SteelLoading data…

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    ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESMOILLoading data…

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      ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESJK PAPERLoading data…

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        ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESHindustan ZincLoading data…

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          ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESHDILLoading data…

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            ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESCox & KingsLoading data…

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              ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESColgate-PalmoliveLoading data…

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                ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESAtul AutoLoading data…

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                  ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESAshok LeylandLoading data…

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                    ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESHindustan ZincHDILCox & KingsColgate-PalmoliveAtul AutoAshok LeylandEXPAND TO VIEW ALL The domestic equity market ended Friday’s session on a positive note, as the benchmark Nifty50 gained 56.50 points, or 0.57 per cent. The positive closing had some technical significance as well. Previously, not only did the Nifty affirm and re-affirm the 50-DMA as its immediate major support, on Friday it moved past its short-term 20-DMA.

                    We expect a positive start on Monday and despite some possible consolidation at higher levels, we expect the market to maintain the overall positive bias. The 10,040 and 10,085 levels will act as immediate resistance for the Nifty50. Supports should come in at 9,950 and 9,910 levels.

                    The Relative Strength Index or RSI on the daily chart stood at 56.7249 and it has marked a fresh 14-period high, which is a bullish signal. It does not show any bullish or bearish divergence. The daily MACD reported a positive crossover and it is now bullish as it trades above its signal line. The candles do not show any significant formations on the charts.

                    Pattern analysis revealed an encouraging picture. As it is evident on the charts, the Nifty remains comfortably placed in the rising channel that it has been trading in. Also, it has reaffirmed the 50-DMA level as its sacrosanct support. It has also moved past the short-term 20-DMA.

                    Friday’s session saw Nifty September futures add 10.42 lakh shares, or 6.57 per cent in Open Interest. This indicates fresh longs in Nifty. Nifty’s closing above the 20-DMA indicates the likely return of short-term momentum to the market. Though consolidation at higher levels is not ruled out, we expect the market to maintain its positive bias. Any consolidation or minor dips should be used to make fresh purchases.

                    STOCKS TO WATCH:
                    Stocks like Colgate-Palmolive, Atul Auto, Cox & Kings and JK Paper gained on Friday with increased volumes. They may continue to witness some momentum on Monday. Technically, a buoyant setup was seen on counters like HDIL, Ashok Leyland, SBI, Hindustan Zinc, MOIL and Tata Steel, among others.

                    (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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