Market has snapped the five session winning streak as Nifty slips 0.22% to close at 8160 on some profit taking. Nevertheless, the index has lodged a marginal higher high of 8213 on opening and got into corrective price action thereafter. Daily charts display a 'bearish outside day / bearish engulfing' candlestick albeit in a smaller range. This suggests consolidation is likely to continue in the immediate near-term. Trading volumes have spike up to highest levels seen this year on back of standard index rebalancing whereas the market breadth has ended 5:9 in favor of decliners. Volatility (India VIX) hits 16% mark as some downside protection is getting built in. Momentum oscillators continue to trade in bullish zone on the daily scale while the hourly readings are in an overbought state thus calling for consolidation of the previous up move. Expect Nifty to oscillate between 8100-8240 before this rally can extend further. Upside target for the range breakout are pegged at 8240 (61.8% Fibo retracement of 2015-16 down move) & 8365 with strong support pegged at 8000.
Once again a mixed trend was seen among sectoral indices and was led by gains in Autos (+2.34%), Metals (+1.16%) and Realty (+0.88%); whereas losses were posted in shares from Telecom (-1.44%), Healthcare (-1.39%) and IT (-1.24%) indexes. Mid-cap and Small-cap indices traded in line with their frontline peer with marginal losses of -0.18% and -0.14% respectively.
Bullish Setups: ADSEZ, GRAN, RECL, PIDI, UBBL, CDH
Bearish Setups: Z, TGBL, BAF, DITV
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 8160 |
| Resistance 1 | 8200 |
| Resistance 2 | 8240 |
| Support 1 | 8110 |
| Support 2 | 8077 |
| Nifty 20 SDMA | 7881 |
| Nifty 50 SDMA | 7795 |
| Nifty 200 SDMA | 7782 |
| Adv : Dec [NSE] | 590 : 970 |
| Turnover Rs Crs. BSE+NSE cash | 39,722 |
| Oscillators | Comments |
| RSI | Bullish |
| MACD | Bullish |
| Stochastic | Bullish (OB) |
| DMI & ADX | Bullish & Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): " Winning streak snapped " (01-Jun-16-EDEL)
Regards,
Tejas J. Shah +91 22 4063 5534
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