The markets took a breather from the continuous ascent in the last few sessions. The expiry of the month on Thursday also played its role in the previous trading session. The profit taking was evident in the individual stocks and sectors as a whole. The buying frenzy was absent in the markets and market lacked momentum for the higher levels. The correction could be attributed to the lower risk strategy by the markets ahead of the expiry. The event to be watched would be the policy rate announcement by the Reserve Bank and a view on the monetary policy in these high inflation times which is posing a difficult task considering the delicate balance between productive liquidity and unproductive part. The technical suggests that the 5400 level would be acting as a strong sentimental support for the markets. The short term moving average (20-EMA) is a significant support to the Nifty in cases of a possible dip. The top out pattern in the medium term moving average (50-EMA) would inflict the current surge of the market for time to come. These two averages will be near to the 5355 levels which could be the next platform for the markets.
The ADX indicator has topped out although for this dip in the Nifty in the previous session to be converted in a major correction, the indicator should continue it’s decent with momentum. The +DI and –DI has also topped and bottomed up respectively which indicates that the buyers are closing their long positions and the sellers are initiating some short positions on higher levels.
The MACD trend indicator is also giving a correction on the relative basis whereas the MACD line is crossing the Signal line which generates a profit booking signal in the current bull markets. The MACD Histogram is also penetrating in the negative domain which signifies that the expiry could bring a correction in the Nifty.
The Slow Stochastic momentum indicator is pointing towards the buying momentum present in the market at every lower level of the markets. The %K and %D line are trading in the above mid zone which gives a buying momentum present in the market in absolute terms and the %K line above the %D is generating a buying momentum in relative terms. We expect Nifty to trade in the range of 5485-5395.
TEAM SLT
The ADX indicator has topped out although for this dip in the Nifty in the previous session to be converted in a major correction, the indicator should continue it’s decent with momentum. The +DI and –DI has also topped and bottomed up respectively which indicates that the buyers are closing their long positions and the sellers are initiating some short positions on higher levels.
The MACD trend indicator is also giving a correction on the relative basis whereas the MACD line is crossing the Signal line which generates a profit booking signal in the current bull markets. The MACD Histogram is also penetrating in the negative domain which signifies that the expiry could bring a correction in the Nifty.
The Slow Stochastic momentum indicator is pointing towards the buying momentum present in the market at every lower level of the markets. The %K and %D line are trading in the above mid zone which gives a buying momentum present in the market in absolute terms and the %K line above the %D is generating a buying momentum in relative terms. We expect Nifty to trade in the range of 5485-5395.
TEAM SLT
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