Charts Indicate Indecisiveness In Mkt

Apart from the volume, the Open Interest has also not increased much. On an hourly chart, the Nifty has formed a negative divergence in RSI. Now, the index is between 200EMA and 50DMA. It is necessary to close above the 50DMA to move higher

The equities traded sideways before the event risk. NSE Nifty declined by 42.95 points or 0.18 per cent. The Smallcap index is the top gainer, with 1.85 per cent being the top gainer. The Media, Metal, and PSE indices gained over 1.5 per cent. The Microcap and Oil and Gas indices advanced by 1.46 per cent. On the flipside, the Realty index is down by 1.85 per cent, and FMCG declined by 1.56 per cent. The Consumer Durables index is also down by 0.77 per cent. The India VIX is up by 0.46 per cent to 14.08. The market breadth is positive as 1,969 advances, and 857 declines. About 34 shares hit a new 52-week low, and 184 stocks traded in the upper circuit.

Kalyan Jewellers, HDFC Bank, Motilal Oswal Fin, Bajaj Finance, and Reliance were the top trading counters in terms of value.

The Nifty opened at the 50DMA and declined sharply in the afternoon session. Though the daily volume is lower than the previous day, the last hour’s volume was higher on a bearish candle. The index has formed the most bearish candle, and the open was also high, and the close was almost low. Interestingly, the index also reacted from the 10 and 30-week average resistance confluence. Apart from the volume, the open interest has also not increased much. After the previous day’s massive short covering this session, low open interest indicates that the market participant is not interested in taking a position before the event risks. On an hourly chart, the Nifty has formed a negative divergence in RSI. Now, the index is between 200EMA and 50DMA. It is necessary to close above the 50DMA to move higher. In any case, the Nifty closes below 23620, which will be negative and can test Monday’s low. Before the RBI monetary policy, Bank Nifty formed an evening star candle, which is also an indication of caution. HDFC Bank alone contributed 25.47 points to the Nifty. Next two days will be crucial for the market. Wait for a weekly close for a directional bias.

(The author is partner, Wealocity Analytics, Sebi-registered research analyst, chief mentor, Indus School of Technical Analysis, financial journalist, technical analyst and trainer)