Nifty hovering in indecisive mode

25,292 is immediate support, below this, the 25,203 level can be tested. In any case, the index enters into a counter-trend consolidation, then 25,067 is final support. The index is trading broadly in 110-150 points range for the last two days. A decisive close of this range will result in a directional move

In a dull trading day, NSE Nifty hit another new lifetime high with low volume. It gained by 27.25 points or 0.11 per cent and closed at 25,383.75 points. None of the sectoral indices gained or lost by over a percentage point. The CPSE index is the top gainer with 0.92 per cent, followed by the Energy index with 0.8 per cent. Realty, Consumer Durables and Private Bank indices gained over 0.50 per cent. On the flip side, the FMCG is the top loser with 0.72 per cent, followed by the IT index with 0.10 per cent. The India VIX is down by 0.72 per cent to 12.46. The market breadth is neutral as 1,448 advances and 1,354 declines. About 200 stocks hit a new 52-week high, and 158 stocks traded in the upper circuit.

New listed Bajaj Housing Finance is the top trading counter on Monday. BSE, Dixon, Bajaj Finance, and Vedanta were the top trading counters in terms of value.

The Nifty traded in a very tight range of 109 points after hitting a new lifetime high of 25,445.70 in the opening hour. The volumes were completely dried, as they were less than half of the Thursday volume—even much less than the previous day. The index has formed a small body candle. After an impulsive move, consolidation is a normal phenomenon. As the Nifty formed a higher high, higher low candle, it has not given any bearish signs. The last two days of price action have been indecisive about moving higher. We need to watch the Friday low of 25,292 points, which is immediate support. Below this, the 8EMA of 25,203 can be tested. In any case, the index enters into a counter-trend consolidation, and the 20 DMA of 25,067 is final and has strong support for now. In fact, the index is trading broadly in the 110-150 points range for the last two days.

A decisive close of this range will result in a directional move. For now, the 25,292-445 zone is crucial for directional bias. The RSI has developed a negative divergence, which is a caution for bullish bias. The hourly MACD has given a fresh, bearish signal. As the Federal Reserve meeting is scheduled on Wednesday, the market may move in sideways for another two days. Stay positive as long as the Nifty trades above 25,204 points. Stock-specific active will continue.

(The author is Chief Mentor, Indus School of Technical Analysis, Financial Journalist, Technical Analyst, Trainer and Family Fund Manager)