Reliance led rally to keep Nifty above 15k points
15,127 – 14,939 will be a critical zone. These two levels will act as support and resistance
image for illustrative purpose
THE stock market continued its positive bias for the second day as the policy triggers came in yesterday. It opened with a gap up and sustained above the opening level. The Nifty was up by 115.35 points and settled at 15,097.35.
Metal, Energy and CPSE indices rallied three to 4.43 per cent. FinNifty and FMCG indices were down by a quarter per cent. All other sectoral indices closed with an average gain of one per cent. Overall market breadth was positive as 1,264 advances and 622 declines were recorded.
The February derivative series closed with 1,281 points or a 9.28 per cent gain. Post-Budget rally of 1,835 points took a breather in the second half of the month. The short-covering because of a technical glitch in NSE, has created havoc and mostly resolved. The Nifty opened with a 98 point gap and mainly traded in the first hour's range.
Reliance rallied over four per cent and contributed to the most of the gains today. The Nifty formed a shooting star candle, which was bearish. It faced resistance at 62 per cent retracement of the prior fall. The price structure's positive aspect is that the Nifty is closing above the prior bar high consecutively for the last few days.
It also closed above the 5 and 8 EMAs and the 20DMA. After the first hour of trading, it mostly consolidated. The momentum is not impressive. The expiry volatility was very limited. The next month PCR is at a higher level of 1.97.
On Friday, 15,127 – 14,939 will be a critical zone. These two levels will act as support and resistance. Between these levels, we may not get profitable decisive trades. Either side breakout will give a trending move. Wait for them to grab.
(The author is a financial journalist, technical analyst, trainer, family fund manager)
