Indecision among market participants continues for the fourth session as Nifty gyrates around 8700 mark and ends the session with marginal gain of 0.18% at 8708. Owing to positive global cues, the index opened on an optimistic note but was met with selling at the resistance line around 8735 followed by profit taking in the second half, thus forming a 'doji' candlestick pattern that indicates indecision. Trading volumes clocked at below average levels and the market breadth ended 9:7 in favor of advancers; whereas volatility (India VIX) ticked up to 14.3% and is likely to trade between 14-16% in the short-term. Oscillator readings have turned flat on hourly scale whereas daily readings are showing mixed signal with MACD rolling bullish, albeit in negative territory. With Nifty nearly testing the resistance line and occurrence of a 'doji' candlestick, it is likely that a period of downward consolidation can materialize for support of 8600 to come into play. However, a meaningful directional move will only occur on breach of the aforesaid range.
Trend among sectoral indices was mixed and was led by gains in Oil & Gas (+1.65%), Autos (+0.85%) and Banking (+0.6%); whereas losses were seen in shares from IT (-1%), Cap Goods (-0.65%) and Telecom (-0.4%) indexes. Broader market Mid-cap and Small-cap indices ended mixed with -0.1% and +0.5% respectively.
Bullish Setups: TECHM, NTPC, ADSEZ, YES, LICHF, LPC
Bearish Setups: APNT, CDH, CEAT
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 8708 |
| Resistance 1 | 8735 |
| Resistance 2 | 8750 |
| Support 1 | 8670 |
| Support 2 | 8636 |
| Nifty 20 SDMA | 8684 |
| Nifty 50 SDMA | 8709 |
| Nifty 200 SDMA | 8058 |
| Adv : Dec [NSE] | 936 : 701 |
| Turnover Rs Crs. BSE+NSE cash | 21,995 |
| Oscillators | Comments |
| RSI | Neutral |
| MACD | Bullish |
| Stochastic | Bullish (OB) |
| DMI & ADX | Bearish & Non Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): 'Doji' at resistance line (25-Oct-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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