Nifty has failed to cross the 8900 mark as the final session of the week witnessed a mild correction of 0.40% to close at 8831. The index opened marginally up but soon witnessed profit taking that intensified in the final hour to manage a close just above the 50-hourly EMA support. Nevertheless, the index traded in a range of 65 points and remains bounded within 8800-8900. Price action over the past couple of weeks is forming a triangle pattern and a breakout in either direction is imminent. Volumes clocked at above average levels on Friday and the market breadth ended 3:5 in favor of decliners. Volatility (India VIX) has ticked further down to 13.25% and is now down to multi-year support range. Momentum readings continue to give mixed signals, unable to guide direction. It is prudent to stay neutral in the near-term until a breakout is achieved in this derivatives expiry week with key support pegged at 21-DEMA of 8770.
A mixed trend was seen among sectoral indices led by gains in Realty (+1%), Oil & Gas (+0.74%) and Metals (+0.18%); whereas losses were posted in shares from Banking (-1.2%), Power (-0.6%) and Telecom (-0.4%) indexes. Boarder market Mid-cap and Small-cap relatively outperformed their frontline peer with marginal gains of +0.28% and +0.08% respectively.
Bullish Setups: HCLT, TVSL, ARBP, BHE, VEDL, BPCL
Bearish Setups: ACC, ENGR, COAL, LPC, PWGR
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 8831 |
| Resistance 1 | 8874 |
| Resistance 2 | 8910 |
| Support 1 | 8786 |
| Support 2 | 8750 |
| Nifty 20 SDMA | 8779 |
| Nifty 50 SDMA | 8676 |
| Nifty 200 SDMA | 7973 |
| Adv : Dec [NSE] | 619 : 998 |
| Turnover Rs Crs. BSE+NSE cash | 28,496 |
| Oscillators | Comments |
| RSI | Neutral |
| MACD | Bearish |
| Stochastic | Bearish |
| DMI & ADX | Bullish & Non Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): " Weakness seeping in " (26-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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