I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.I-Sec is a SEBI registered with SEBI as a Research Analyst vide registration no. Registered office of I-Sec is at ICICI Securities Ltd. 2 % retracement of past ten session decline (41840 -37626 ). Immediate hurdle is now placed at 39200 mark which is 38. Going ahead, we expect supportive efforts to emerge from the key support zone of 37300 -37500 however such price action would be confirmed only once index starts making higher high -low formation. Past ten session decline measuring 10 % from highs of 41840 has rendered prices to oversold readings with daily stochastic of 4 ahead of Friday’s monetary policy. The daily price action formed a bear candle with continuation of lower high -low sequence indicating failed intra day pullbacks amid extended profit booking in run up stocks and expiry related trades weighing down the prices. On the upside, 17500 would continue to act as immediate hurdle as it is 50% retracement of past two week’s decline (18096-16820). We expect supportive efforts to emerge around key support zone of 16800- 16700 amid elevated volatility ahead of monthly expiry coupled with RBI policy. Key point to highlight is that, past three week’s 1275 points decline hauled daily and weekly stochastic oscillator in oversold territory with a reading of 4 and 16, respectively, indicating possibility of technical pullback from oversold conditions cannot be ruled out. Therefore, for a pause in the ongoing downward momentum the index needs to decisively close above the previous session’s high of 17038 else corrective bias will continue. The formation of lower high-low signifies prolonging of corrective bias. The daily price action formed a bear candle with shadow on the upside, indicating continuance of corrective bias. Eventually, the index pared initial gains entirely and approached its 200 day’s EMA placed at 16880. The Nifty staged a sharp recovery post an initial gap down opening (17007-16870) but failed to sustain at higher levels.
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