Nifty forms higher high candle
Short-term looks positive; As Tuesday is a holiday for the market, any further escalation in the Ukraine-Russia war will witness a high volatile session
image for illustrative purpose
As the efforts to ease the Ukraine-Russia tensions, the market across the world recovered from the day's low. The domestic market opened with a gap down and recovered sharply. The Nifty closed at 16789 with 135.5 points or a 0.81 per cent gain. The Nifty has recovered more than 465 points from the day low.
The Metals led the recovery with a 4.95 per cent gain. The Energy index was up by 2.47 per cent, and the Infra index advanced by 2.11 per cent. The IT index is up by 1.11 per cent. Bank Nifty and FinNifty down by 0.50 per cent and 0.54 per cent respectively. All other sector indices gained bow 0.2 per cent to 0.8 per cent. Surprisingly the India VIX is up 6.84 per cent.
The market breadth is positive as 1343 advances and 727 declines. About 33 stocks hit a new 52 week low, and 150 stocks traded in the lower circuit.
The Nifty has recovered the opening losses and closed above the Friday high. Thursday's gap is almost filled. Technically, the Nifty has formed a bullish engulfing candle with a high cash volume. The Nifty has recovered more than 58 per cent of the over 1,000 points decline of the last Wednesday-Thursday. The breakdown zone is at 16800-830, which may act as immediate resistance. As the Nifty has formed higher high candle, the short-term looks positive. But, the index may retest the breakdown level. The earlier counter-trend retracements were limited to 2-5 days. We have already closed positively for two days. The 200DMA resistance is placed at 16914, and the 50DMA is at 17146. After 16830, these levels will act as a very strong resistance point. There are no positive divergences developed on any time frame.
The RSI once again bounced from 30 zone after November. The histogram shows the decline in the negative momentum with today's rise. The Nifty closed at 5EMA. The index is still in a neutral zone on an hourly chart, and the MACD line is below zero.
The Nifty futures volume is lesser than the previous day. The PCR has at its peak of 1.86, showing a bearish view. As Tuesday is a holiday for the market, any further escalation in the Ukraine-Russia war will witness a high volatile session.
