MACD shows further bearish momentum
RSI declined to 61.60; Elder impulse system formed a first bearish bar after many days; As the monthly derivatives expiring today, expect more volatile moves
image for illustrative purpose
On the hourly chart, the index shows a possible bounce, but needs more confirmation. For an upside, the Index must close above the 24,582-595 zone of resistance. If the index closes below 24,346pts, the market may witness more selling pressure
Positive Market Breadth :
- 1,987 advances
- 699 declines
- RSI declined to 61.60
- 208 stocks in upper circuit
- India VIX is down by 7.73
- 129 stocks hit a new 52-wk high
The equity frontline indices traded nervous and volatile, but the market was able to recover the losses. NSE Nifty declined by 65.55 points of 0.27 per cent. The Smallcap-100 index is up by 1.76 per cent is the top gainer. The Oil and Gas and Energy indices are up by 1.69 per cent and 1.23 per cent, respectively. The PSE and CPSE indices advanced by 1.22 per cent and 1.09 per cent. The Consumer Durable and Midcap-100 indices are up by 1.08 per cent and 1.08 per cent. Bank Nifty and FinNifty are down by 0.76 per cent and 0.60 per cent. The FMCG, also down by 0.53 per cent. The India VIX is down by 7.73 per cent. The market breadth is positive as 1,987 advances and 699 declines. About 129 stocks hit a new 52-week high, and 208 stocks were traded in the upper circuit. HDFC Bank, Indus Tower, ICICI Bank, and Avanti Feed were the top trading counters on Wednesday in terms of value.
The Nifty has formed a Small Body candle that resembles the Doji candle after a volatile session. It took the support at 20DMA for the second day. The volumes recorded were above average, but lower than the previous day. The index bounced 143 points in the late afternoon and was able to close just at the opening level. Wednesday’s price action, by closing below the prior day’s low, does not give any directional change. The 8EMA is now clearly entered into the downtrend. As mentioned yesterday, the 20DMA is the crucial support for now. The index also formed an inside bar. The MACD shows further bearish momentum, and the RSI declined to 61.60. The index is trading below the previous week’s low. The Elder impulse system has formed a first bearish bar after many days. On the hourly chart, the index shows a possible bounce but needs more confirmation. For an upside, the Index must close above the 24,582-595 zone of resistance. If the index closes below 24,346, the market may witness more selling pressure. As the monthly derivative expiry is just two days away, expect more volatile moves.
(The author is Chief Mentor, Indus School of Technical Analysis, Financial Journalist, Technical Analyst, Trainer and Family Fund Manager)
