Following four sessions of consolidation, Nifty exhibited a strong rally and closed at a new cycle high above 7950. The index opened on a flat note near the 50 hourly EMA support and traded in a narrow range in the first half of the session only to catapult higher in the second half to recoup the losses of previous three sessions. Nevertheless, it has failed to surpass the resistance level of 7980. Volumes clocked at marginally above average levels whereas the market breadth ended robust at 2:1 in favor of advancers. Volatility (India VIX) was unchanged at 16.6%% but is expected to move higher as the FOMC and BoJ meetings call for hedges to be built. Momentum oscillators have once again rolled bullish on the hourly scale while the daily indicators are comfortably trading in buy mode Nifty faces strong resistance at the 7980-8000 cluster from the 50% Fibo retracement mark and the Decemebr-2015 swing tops which should lead to hesitation. Unless 8000 is taken out on force and sustains higher there is a possibility of Nifty entering a corrective phase once again in the short-term. On the flipside surpassing the psychological milestone of 8000 can led to rally stretching up to 8240.
A secular uptrend was seen in sectoral indices led by gains in Banking (+2%), Metals (+2%) and Realty (+1.95%) whereas relative underperformance was seen in Oil & Gas (+0.45%) and FMCG (+0.77%) indexes. Broader market Mid-cap and Small-cap ended lower as compared to their frontline peer with gains of +0.80% and +0.68% respectively.
Bullish Setups: TTAN, AXSB, GNP, NJCC, TELX
Bearish Setups: MRCO, APHS, GDSP, BHIN
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 7962 |
| Resistance 1 | 8000 |
| Resistance 2 | 8050 |
| Support 1 | 7922 |
| Support 2 | 7892 |
| Nifty 20 SDMA | 7744 |
| Nifty 50 SDMA | 7480 |
| Nifty 200 SDMA | 7858 |
| Adv : Dec [NSE] | 1005 : 543 |
| Turnover Rs Crs. BSE+NSE cash | 20,968 |
| Oscillators | Comments |
| RSI | Bullish |
| MACD | Bullish |
| Stochastic | Bearish |
| DMI & ADX | Bullish & Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): " New cycle high close " (27-Apr-16-EDEL)
Regards,
Tejas J. Shah +91 22 4063 5534
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