Nifty Hovering In Indecisive Mode

The equities were indecisive about moving directionally, as traders were not interested in participating. The Geo-political conflict escalation impacted the trading volumes in the session. The Nifty gained by 31.75 points or 0.13 per cent and closed at 24,641.80 points. The Consumer Durable Index is the top gainer with 0.57 per cent, followed by the FMCG index with 0.42 per cent.

The PSU Bank index is a top loser with 0.89 per cent, followed by the Media index with 0.51 per cent. All other sector indices closed with moderate gains or losses. The India VIX is down by 3.70 per cent to 13.27. The market breadth is positive as 1501 advances and 1305 declines. About 103 stocks hit a new 52-week high, and 129 stocks traded in the upper circuit. In terms of value, Swan Energy, JWL, Vedanta, Titagarh wagons, and Reliance were the top trading counters.

Another dull day passed with lacklustre trading. The Nifty traded in a range of just 107 points the whole day. Trading volumes have been at their lowest in recent days. Though the index closed positive, it has not given any directional bias, as it was below the previous day’s high. The Nifty formed a very small body, small shadows, and a candle with low volume. For the last four days, the index has been moving within the very small range of 240 points. As the trading range and volumes shrunk, expect an unexpected sharp move on either side.

The 50DMA is still in the downtrend, though the price is above this key moving average for the last five days. Now, the 8EMA support has risen to 24,523, which is just below the breakout level. In any case, the index closes below the the24,523-457 zone of support, expecting more fall towards the 20DMA of 24,120 points. On the upside, at least it must close above the prior bar high, session’s high of 24,692. The last Thursday’s high of 24858 is the resistance now. Above this level, the index will impulsively resume the uptrend. Be with a positive bias with a 24,457 as a strict stop loss.

(The author is Chief Mentor, Indus School of Technical Analysis, Financial Journalist, Technical Analyst, Trainer and Family Fund Manager)