Markets have scaled to new 52-week highs Nifty on expiry day as Nifty ends at 8666, gaining 0.59%. The index opened higher and traded in a tight range of 30 points for large part of the day only to rally in the final hour above the 8650 technical barrier. Trading volumes clocked significantly above average levels owing to the expiry and the market breadth ended at 9:7 in favor of advancers. Volatility (India VIX) subsided further down to 15.15% but is likely to swing upwards in the coming weeks as it trades near its range lows. Momentum readings are trading in bullish territory and even the hourly cycle has turned bullish after a minor consolidation. We continue to expect Nifty to test 8700 levels, however caution as advised as current lofty levels can attract profit taking correction, hence it is prudent to fade further strength. Immediate support rests at 8574 and key trend pivot is pegged at 8480 i.e. 21 day EMA.
Once again a mixed trend was seen among sectoral indices led by gains in FMCG (+1.5%), Realty (+0.95%) and Autos (+0.81%); whereas losses were posted in shares from Cap Goods (-0.84%), Metals (-0.74%) and Oil & Gas (-0.12%) indexes. Broader market Mid-cap and Small-cap indices traded in line with their frontline peer with gains of +0.6% each.
Bullish Setups: HCLT, PWGR, SUNP, BHFC, CRG, RELI
Bearish Setups: TECHM, TVSL, DRRD, PNB
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 8666 |
| Resistance 1 | 8700 |
| Resistance 2 | 8750 |
| Support 1 | 8625 |
| Support 2 | 8588 |
| Nifty 20 SDMA | 8488 |
| Nifty 50 SDMA | 8263 |
| Nifty 200 SDMA | 7843 |
| Adv : Dec [NSE] | 893 : 704 |
| Turnover Rs Crs. BSE+NSE cash | 33,963 |
| Oscillators | Comments |
| RSI | Bullish |
| MACD | Bullish |
| Stochastic | Bullish |
| DMI & ADX | Bullish & Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): " Expiry at 52-week high " (29-Jul-16-EDEL)
Regards,
Tejas J. Shah +91 22 4063 5534
Edelweiss Research is also available on Bloomberg EDEL <Go>, Thomson First Call, Reuters and Factset. Please write to us in case you need any assistance in this respect.
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