Nifty snapped two-session losing streak after a strong recovery in the second half of trade to end with a marginal gain. The index continues to hold above its 21-DEMA (8606) short-term trend pivot, thus keeping the bulls in fray. After a weak open and range bound trade in the morning session, the index slipped briefly below the 8600 handle but quickly recovered from the lows of a triangle pattern in formation. Trading volumes continue to be tepid ahead of Thursday's derivatives settlement and the market breadth ended 7:8 in favor of decliners. Volatility (India VIX) has slipped further down to 13.90%. Momentum oscillator readings continue to be flat lined and unable to guide direction due to the sideways price action. The index is charting out a triangle pattern where the immediate near-term can still see some sideways price action, before an eventual breakout of the range above 8720 for a rally up to 8865; whereas the bullish hypothesis will be negated below 8540.
Trend among sectoral indices was mixed and was led by gains in IT (+1.82%), Telecom (+1.7%) and Banking (+0.11%); whereas losses were posted in shares from Oil & Gas (-1.48%), Power (-1.11%) and Cap Goods (-1.1%) indexes. Boarder market Mid-cap and Small-cap indices relatively underperformed their frontline peer with marginal losses of -0.28% and -0.07% respectively.
Bullish Setups: INFO, SAIL, ICICIBC, VEDL, BOI, NMDC
Bearish Setups: HPCL, ARBP, GNP
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 8632 |
| Resistance 1 | 8679 |
| Resistance 2 | 8696 |
| Support 1 | 8602 |
| Support 2 | 8580 |
| Nifty 20 SDMA | 8632 |
| Nifty 50 SDMA | 8454 |
| Nifty 200 SDMA | 7881 |
| Adv : Dec [NSE] | 735 : 866 |
| Turnover Rs Crs. BSE+NSE cash | 21,732 |
| Oscillators | Comments |
| RSI | Neutral |
| MACD | Bearish |
| Stochastic | Bearish |
| DMI & ADX | Bullish & Non Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): " Recovery from 21 DEMA " (24-Aug-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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