Nifty still hovering in defined range

The benchmark indices are still under consolidation within the range. NSE Nifty closed at 18118.55 with 90.90 points or 0.50 per cent gains. The Nifty IT index is the top gainer with 1.88 per cent. Bank Nifty is up you by 0.74 per cent. Pharma and FMCG indices also gained by 0.89 per cent each. The Nifty Metal, Realty and Indices are down by 0.36 per cent. Other sectoral indices closed with small gains. The market breadth is negative as 1093 declines and 849 advances. The broader market index Nifty-500 breadth is also negative. About 68 stocks hit a new 52-week high, and 82 stocks traded in the upper circuit. ICICI Bank, Kotak Bank, and HDFC Bank were the top trading counters today.

The Nifty has formed a long-legged Doji candle, and it shows increased volatility and indecision as the budget nears. The monthly expiry is just two days away, and the rollover activity is just above the three-month average and below the six-month average.

The volume was lower and below average. The Nifty is still in the defined range and has not shown any trend change implications. After the first hour of trading lost momentum and traded within the first bar's range. As the indecision candle formed, there is no directional bias evolved. Even though the market closed higher, the broader market breadth is negative. The market is moving in a directionless manner, as it is one day up and another day down. For now, the 18120-280 zone of resistance is crucial for a bullish bias.

At the same time, it must close below the 18050-27 zone of support for a bearish view. These zones are valid for the next two days only. The RSI moved above the 50 zone, and the momentum is positive. As long as the index trades above the prior low, be with a positive bias. Stay neutral till the budget.

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