RBI's Covid measures boost Sensex

The benchmark index, Nifty, reclaimed the 14600 mark on RBI measures with Rs.50,000 crore package to counter the Covid pandemic. Barring Realty, all the sectoral indices closed in green. The Nifty settled at 14617.85 with a 121.35-point gain. The Pharma index up by 4.12 per cent and the Banknifty advanced by 1.59 per cent. FinNifty, IT and Metal indices closed with one per cent gains. All other sector indices gained at an average of half a per cent. India VIX is cooled off by 4.55 per cent. The market breadth is positive as 1198 advances and 672 declines. 97 stocks hit new 52 weeks high today.

The Nifty closed in positive territory with the help of RBI's measures. Though the Nifty closed with 121 points up move, and it did not move either yesterday's high or low. It formed an inside bar.

With this, Tuesday's high and low will become resistance and support for tomorrow. Overall, the price structure has not changed much. The benchmark index is in a minor downtrend within the ongoing counter-trend consolidation channel.

The only positive in the last two is that it formed higher bottoms. It just closed above the 20DMA, but it is still trending down. The Bollinger bands flattened and indicating the more sideways action to come. The MACD has given a buy signal on the hourly chart. But the RSI is still below the 50 zone.

There is no change in the directional indicators, ADX, +DMI, and -DMI are trending down. As I mentioned in earlier columns, the conviction is missing on the upside. Stay cautious as long as it trades below 14724-14800 zone for now. A weekly close above this zone will be a positive sign for the short term. But, a close below 14469 is negative.

Since last month, the FIIs have been selling the equities and increased their selling pressure during the last three days. The sector rotation and the Mid and Small-caps out-performance are keeping the market alive.