Final session of the week saw Nifty consolidate gains logged in the previous session as it traded in a narrow range of 33 points and ended at 8261. The index managed to print a minor higher high of 8274 in the opening hour and thereafter traded sideways throughout the day, holding above the 21 & 50 hourly EMAs. Volumes clocked at slightly above average levels and the market breadth ended 8:7 in favor of advancers. Volatility (India VIX) has further subsided down to 15% fallen sharply to 1–½ month low of 15% as the market perceives a low risk near-term environment. Daily chart displays a 'spinning top' candlestick pattern which suggests a pause in the near-term up move and below 8233 will trigger profit taking. Meanwhile, the weekly candlestick is a bold bullish one following a negative week. Momentum oscillators are now showing neutral-bullish readings, typical of a counter trend move. We continue to expect Nifty to test 8320 (38.2% Fibo retracement of the entire down move from 8968 to 7916) and could perhaps extend up to 8400; whereas the 200 DMA at 8196 will offer support in the immediate near-term.
Trend among sectoral indices was mixed and was led by gains in Realty (+1.6%), Banking (+1.1%) and FMCG (+0.5%); whereas marginal losses were posted in shares from Telecom (-0.65%), Auto (-0.45%) and Metal (-0.2%) indexes. Broader market Midcap and Small cap indices traded in line with their frontline peer with marginal gains of +0.2% and +0.5% respectively.
Bullish Setups: NIFTYBANK, INFO, RIL, APTY, ARVND
Bearish Setups: SHTF, IHFL, COAL
| Nifty Index |
|
| Bloomberg Code | NIFTY Index |
| Spot Price | 8261 |
| Resistance 1 | 8288 |
| Resistance 2 | 8320 |
| Support 1 | 8222 |
| Support 2 | 8186 |
| Nifty 20 SDMA | 8118 |
| Nifty 50 SDMA | 8420 |
| Nifty 200 SDMA | 8196 |
| Adv : Dec [NSE] | 853 : 756 |
| Turnover Rs Crs. BSE+NSE cash | 19,225 |
| Oscillators | Comments |
| RSI | Neutral |
| MACD | Bullish |
| Stochastic | Bullish |
| DMI & ADX | Bearish & Non Trending |
* OB: Over Bought
OS: Over Sold
Edelweiss Technical Reflection (ETR): " Rally grinds to a halt " (12-Dec-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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