Strong underlying momentum continued to pull markets higher for a third session with Nifty gaining 1.45% to scale above 7400 mark. The index opened with yet another bullish gap and managed to hold above 7400 to put up a rally near nearing 7500. Although trading volumes were a tad lower as compared to previous couple of sessions, they are better than the recent average and the market breadth continued to impress with 5:2 in favor of advancers. Volatility (India VIX) has further subsided down to 18% but is likely to remain in a range of 17-21% in the short-term. This week has seen Nifty rally 9.6% off the 52-week lows and typically such moves see roadblocks at 10-12% mark. Momentum has clearly shifted gears in favor of bulls for the short-term with most indicators rolling bullish, albeit the hourly readings that are now into overbought threshold and eventually lead to a period of minor correction / consolidation. Nifty has given a breakaway gap from a 'double bottom' pattern with target in the range of 7550-7600 where the 4-month falling trend line will cap further upside. Following tomorrow's final session of the week, a long-weekend will prompt some trimming of positions in the second half. On the downside, the 21 DEMA at 7226 will act as a strong support.
Once again the trend among sectoral indices was largely positive led by gains in Cap Goods (+4.1%), Metals (+4%) and Autos (+2%); whereas the only losing sector of the day was FMCG (-0.2%). Broader market Mid-cap and Small-cap indices continued to underperform their frontline peer with gains of +0.6% and +1.35% respectively.
Bullish Setups: LT, HNDL, MSIL, ACEM, BHFC, TATA, HEXW
Bearish Setups: PCJ, LPC, APNT, APHS, BAF
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 7475 |
| Resistance 1 | 7512 |
| Resistance 2 | 7575 |
| Support 1 | 7420 |
| Support 2 | 7380 |
| Nifty 20 SDMA | 7174 |
| Nifty 50 SDMA | 7428 |
| Nifty 200 SDMA | 7952 |
| Adv : Dec [NSE] | 1089 : 453 |
| Turnover Rs Crs. BSE+NSE cash | 21,595 |
| Oscillators | Comments |
| RSI | Bullish |
| MACD | Bullish |
| Stochastic | Bullish (OB) |
| DMI & ADX | Bullish & Non Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): " Resistance at 7535-7575 " (04-Mar-16-EDEL)
Regards,
Tejas J. Shah +91 22 4063 5534
-----------------------------------------------------------------------------------------------------------------------------------------------
Disclaimer: This e-mail message may contain confidential, proprietary or legally privileged information. It should not be used by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender. Please click here for detailed DISCLAIMER.
You received this message because you are subscribed to the Google Groups "LONGTERMINVESTORSRESEARCH" group.
To unsubscribe from this group and stop receiving emails from it, send an email to longterminvestorsresearch+unsubscribe@googlegroups.com.
Visit this group at https://groups.google.com/group/longterminvestorsresearch.
For more options, visit https://groups.google.com/d/optout.
No comments:
Post a Comment