Three days of gains have been snapped as Nifty consolidates in yesterday's session and ends with a marginal loss of 0.13% at 8774. As a result Nifty has formed a 'spinning top' candlestick pattern on daily chart that indicates indecision and can lead to some sideways consolidation. The index opened on a flat note and traded within a range of 53 points throughout the day resulting in lower than average volumes. Market breadth however was weak at 1:2 in favor of decliners and volatility (India VIX) ticked up to 13.34%. Momentum oscillators are trading with a bullish bias on daily chart and the ADX is also showing a trending phase. We continue to expect Nifty to ascend towards the 8900-9000 mark in the short-term following a month-long range breakout with 8680 acting as a crucial support.
Once again a mixed trend was seen among sectoral indices led by gains in Autos (+0.35%), Metals (+0.32%) and FMCG (+0.21%); whereas losses were seen in Telecom (-5.6%), Realty (-2%) and Power (-0.9%) indexes. Boarder market Mid-cap and Small-cap indices traded relatively outperformed their frontline peer with marginal losses of -0.38% each.
Bullish Setups: ICICIBC, INFO, TTAN, EXID, DRRD
Bearish Setups: DLFU, BHARTI, RPWR, AL
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 8774 |
| Resistance 1 | 8820 |
| Resistance 2 | 8850 |
| Support 1 | 8754 |
| Support 2 | 8716 |
| Nifty 20 SDMA | 8652 |
| Nifty 50 SDMA | 8525 |
| Nifty 200 SDMA | 7906 |
| Adv : Dec [NSE] | 555 : 1071 |
| Turnover Rs Crs. BSE+NSE cash | 24,580 |
| Oscillators | Comments |
| RSI | Bullish |
| MACD | Bullish |
| Stochastic | Bullish (OB) |
| DMI & ADX | Bullish & Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): " Spinning top " (02-Sep-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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