Nifty set to be volatile as May series expiry nears
The Bank nifty and the Fin Nifty suffer 0.81% and 0.71% loss as Nifty closes at 15,2048
image for illustrative purpose
INDIAN stock market traded with nervousness and closed on a flat note. It did not sustain at the higher levels and witnessed profit booking. The Nifty closed at 15,208.45 with just 10.75 points gain. The Bank nifty and the Fin Nifty suffered 0.81 per cent and 0.71 per cent loss. The broader indices Midcap-100 and Smallcap-100 indices closed in negative territory. Nifty-500 index closed almost at the previous close. The Media index up by 3.17 per cent. All the other sectoral indices advanced by less than a per cent. The overall market breadth is moderately positive as 1040 advances and 874 declines. About 172 stocks hit a new 52-week high, and 156 stocks hit the upper circuit.
Another auspicious opening of 96 point gap up finally ended with a bearish belt hold candle formation. It means the Nifty failed to move above the opening level. Though it formed higher high and higher low bar as we expected yesterday, the suspicion of the positiveness still continues. As the Nifty failed to close above the prior bar high or to form a higher high, on the hourly chart is a real concern. It opened just 0.9 per cent to the lifetime time, given hopes of reaching new highs at the beginning.
Though it traded mostly in the positive territory, the decline from the beginning of the day gives several caution signals. It formed a rising wedge on a line chart, which is bearish. It tested the 3rd March high and failed to sustain above that. On a 75-minute chart, the MACD has given a sell signal and showing the bearish momentum. As mentioned yesterday, the negative divergence in RSI on a 75 minutes chart, showing its impact on the price moment. Even though the prices are near an all-time high, the MACD line well below the 16the February level. The RSI is moving in a tight range for the past two months. A decisive move is required to sustain and continue the rally now. May series is expiring in two days may witness volatility.
(The author is financial journalist, technical analyst, family fund manager)
