It’s time to stay with neutral bias
Possible consolidation in 19,300-650 range for next 3-5 sessions
image for illustrative purpose
Positive Market Breadth
• Negative gap opening
• 106 stocks hit a new 52-week high
• 98 stocks traded in the upper circuit
• India VIX is up by 1.14% at 11.11 level
The equity benchmark indices closed in positive territory as the smart recovery took place in the last hour. NSE Nifty gained by 30.05 points or 0.15 per cent and closed at 19,425.35 points. NSE Nifty Media index is the top loser with 1.23 per cent. The Nifty IT and Auto indices are down by 0.26 per cent and 0.42 per cent, respectively. All the other sectoral indices gained by 0.1 per cent to 0.96 per cent. India VIX is up by 1.14 per cent and closed at 11.11 level. The market breadth is positive. About 106 stocks hit a new 52-week high, and 98 stocks traded in the upper circuit. CDSL, HDFC Bank, HAL, and MCX were the top trading counters in terms of value.
The Nifty closed flat after a volatile session. After opening with a negative gap, it recovered all losses by the end of the day and closed in positive territory. It also erases all the previous day’s losses and closes at the day’s high. Initially, it fell below 20DMA, but finally, it was able to close above it.
Over 88 points recovery in the last erased mid-session losses. Technically, there is no change in the set-up. As long as it trades below 19,644 points, it tries to consolidate within the range. The 6th November’s gap area support of 19,309 will act as important support. Expect the consolidation between 19,300-650 range for the next 3-5 days. This range is nothing, but the current week’s range. As the truncated week is ahead, the index may not witness a huge movement on either side.
Banks and Metal stocks led today’s recovery as they bounced sharply from the lows. The RSI is still flat. The histogram shows an increased bullish momentum. A directional bias will emerge. Only the 19,125-556 range has to be taken out. At least for another week, stay with neutral bias.
(The author is Chief Mentor, Indus School of Technical Analysis Financial Journalist, Technical Analyst, Trainer, Family Fund Manager)
