Nifty slipped down for a second session following Thursday's weakness and has managed to close 0.23% lower at 8572. The index opened slightly higher above 8600 but was unable to sustain and soon witnessed profit taking throughout the day barring the final hour that saw some losses being recouped. Nevertheless, Nifty has closed below its 21 DEMA and 12 DSMA thus putting a question mark on the short-term trend that has more-or-less been sideways. Trading volumes clocked at tepid levels but the market breadth ended weak at 1:2 in favor of decliners. Volatility (India VIX) ticked up to 13.57% after testing yearly lows but remains in a low risk environment. Momentum readings have rolled bearish on both daily and hourly charts and indicate some further weakness. The index is now poised at the recent range low of 8518-8540 and unless decisively breaks lower, will likely trade in the broadly established range of 8500-8700. On a breach below 8500 we expect Nifty to drop swiftly down to 8300.
Among notable sector movers, losses were posted in IT (-1.25%), Cap Goods (-1.25%) and Realty (-1.15%) indexes; whereas gains were seen in shares from Oil & Gas (+0.7%), Autos (+0.62%) and Telecom (+0.33%) indices. Boarder market Mid-cap and Small-cap indices ended on a mixed note with +0.17% and -0.12% respectively.
Bullish Setups: INFO, SAIL, ICICIBC, BHEL, GAIL
Bearish Setups: LT, TATA, RELI, AJP, GNP, HEXW
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 8572 |
| Resistance 1 | 8608 |
| Resistance 2 | 8649 |
| Support 1 | 8540 |
| Support 2 | 8518 |
| Nifty 20 SDMA | 8629 |
| Nifty 50 SDMA | 8482 |
| Nifty 200 SDMA | 7889 |
| Adv : Dec [NSE] | 577 : 1019 |
| Turnover Rs Crs. BSE+NSE cash | 20,509 |
| Oscillators | Comments |
| RSI | Neutral |
| MACD | Bearish |
| Stochastic | Bearish |
| DMI & ADX | Bearish & Non Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): " Support cluster at 8518-8540 " (29-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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