Nifty forms small body candle

The market is in a holiday mood. The benchmark indices traded in a tight range as the traders were absent. NSE Nifty traded in the just 80 points range. Finally, it declined by 82 points or 0.42 per cent and closed at 19443.55. The PSU stocks dominated on Monday. The CPSE, PSE, and the PSU Banking indices were up by 1.13 per cent to 3.64 per cent. The Nifty Energy and Midcap indices were the gainers today. All other sectoral indices were down 0.10 to 0.73 per cent. The India VIX is also down by 1.41 per cent to 11.18. The market breadth was negative as 1470 declined and 976 advanced. About 146 stocks hit a new 52-week high, and 104 stocks traded in the upper circuit. PFC, HDFC Bank, Coal India, BSE were the top trading counters today in terms of value.

In a dull trading session, the Nifty formed a small body candle. It failed to move above the 19,535 points for the fourth straight session. It traded in the first hour’s range. Only the PSUs were in the limelight today. CPSE, PSE, and PSU Bank indices gained over 1.2 per cent to 2.61 per cent and made the market live. The Muhurat trading had formed an Evening Star. Today, the Nifty opened with a negative gap and closed below the open. It erased all the Muhurat trading gains. The afternoon recovery is not sustained in the last hour. It registered a fresh distribution day. If the Nifty continues to decline, the immediate support is at 20DMA of 19348. The RSI declined to 51.26 from the above 55 zones, which is not a good sign. The MACD histogram also shows a decline in the momentum. The Elder’s impulse system has formed a neutral bar after a series of bullish bars, which is another indication of tiredness in the trend. Traders were not interested in taking positions as Tuesday is a holiday. Wednesday’s opening hour levels will give us clues about the directional change.