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Nifty reclaims 50DMA

With a perfect sector rotation and led by the BFSI sector stocks sharp moves, the market closed with a half a per cent gain.

image for illustrative purpose

Nifty reclaims 50DMA
X

23 March 2021 11:18 PM IST

With a perfect sector rotation and led by the BFSI sector stocks sharp moves, the market closed with a half a per cent gain. The positive sentiment is back in these sectors as the supreme court judgement on interest waiver and moratorium. The apex court denied both.

The Nifty closed at 14,814.75 with a 78.35 points gain. The Bank nifty was up by 1.73 per cent and Fin Nifty advanced by 0.90 per cent. Barring FMCG, metal and media sector indices, all other indices rose by 0.50 to 1 per cent. India VIX up by 0.84 per cent. The overall market breadth is positive as 1,115 advances and 776 declines.

The Nifty reclaimed the 50DMA after trading below for three days. It also closed above Friday's high. After an indecisive Doji and inside bar, a decisive close out of the range is positive. As we projected, the 14,843 target has achieved. Now the next target is at 14,959.

The supreme court judgement on loan moratoriums and interest waiver case triggered some tremors in the market. A 100 point up move and an immediately 170 point fall in just 90 minutes triggered stop losses on both sides. With this 170 points move, the Nifty formed long shadows and a small body candle. This is not a stronger bullish sign.

As the March series is expiring in the next two days, the rollovers are happening aggressively. Currently, the rollovers are at 45.87 per cent. This is above the three and six months averages. As mentioned earlier, the current consolidation may extend another six to nine days. Each of the swings in the current consolidation is six to nine days.

We may get a decisive trending move in next three to four sessions. There is not much change in indicators set up. As long as the Nifty trades above 14,753, be with a positive bias. The volatility may rise further as the monthly expiry in scheduled in two days. On the upside, 14,896-14,959 are the immediate target. Above these levels, continue with a trailing stop loss. At the same time, avoid a short position for the next two days. If you are not interested in taking a long position, better keep away from the market.

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

BFSI sector stocks Nifty Bank nifty FMCG 
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