Nifty fails to sustain momentum on lack of triggers

The stock market ended its two-day rally with fresh selling pressure emerges in the large-cap stocks. The benchmark indices failed to move last week's high. The Nifty lost 154.4 points and closed at 14,690.70 points. The Bank Nifty and Fin Nifty closed with 1.69 per cent and 2.01 per cent losses. FMCG continued to be positive by 1.02 per cent and Realty index up by 1.72 per cent. The Nifty Midcap-100 and Smallcap-100 index by 0.35 per cent each. The India VIX is up by 0.78 per cent. The market breadth is negative as 990 stocks declined and 900 advanced.

The Nifty failed to sustain the positive momentum for the second consecutive day. It formed an inside bar, as it traded within the previous day range. It has given up almost 50 per cent of the Tuesday gains.

For now, yesterday's high and low will act as a resistance and support for the next two days. As we suspected yesterday, as the market breadth not so exuberant, the market failed to get the driving force to continue the rally. It again closed below the 50DMA and 20 DMA.

For the first time in the last one year, the Nifty is oscillating around 50DMA for an extended period. The leaders in 337 points single day rally, the BFSI, IT and lost the momentum. The heavyweight stocks HDFC twins and Reliance were the major reason for today's fall.

Once the drivers of the market can't make new highs. Lack of triggers and leaders, the Nifty failed to maintain the opening levels. It also failed to close above the prior bar high on the hourly chart. The MACD on hourly has given a sell signal at the last hour of trading.

As Friday is a holiday, there is only one trading session left in the current week. The Nifty forming a shooting star candle a weekly chart.

(The author is a financial Journalist, technical analyst, family fund manager)