Nifty making higher lows
Either side of the breakout will give a directional move
image for illustrative purpose
Nifty has formed an inside bar and closed near the 22,000 level. Since the recent low, the Nifty is gaining and losing in alternate days. The other crucial and important fact is that, from January 12, the volumes were recording above average
Equities rebounded and erased the Monday’s losses as NSE Nifty gained by 157.70 points, or 0.72 per cent, and closed at 21,929.40 points. Bank Nifty and FMCG indices were closed marginally lower by 0.29 per cent and 0.16 per cent. All other sectoral indices were positive, led by IT. The Nifty IT index is up by 2.92 per cent and is the top gainer. The Metal, Auto, and Pharma indices were up by 1.07 per cent to 1.59 per cent. All other indices advanced by less than a percentage point. Market breadth is positive, with 1,635 advances and 943 declines. About 264 stocks hit a new 52-week high, and 168 traded in the upper circuit.
HDFC Bank, PayTM, NHPC, and JioFin were the top trading counters in terms of terms of value.The Nifty has formed an inside bar and closed near the 22,000 level. Since the recent low, the Nifty is gaining and losing in alternate days. The other crucial and important fact is that, from January 12, the volumes were recording above average. Neither bulls nor bears dominate the market directionally. Interestingly, the last six days of sharp decline were retraced 100 per cent in six days. After this retracement, the index is consolidated within the range for the last two days. For the last 35 days, the Nifty is trading in the 21,074-22,126 range. Either side of the breakout will give a directional move. As the index is near the resistance and making higher lows, it is better not to be short. The RSI is also near the bullish zone, and the MACD is about to give the bullish signal. A closed above 22,126 pts, the immediate target is at 22,232 points, which is an extension target. But a close below the 21,726 points, will lead to the resumption of a downside move. Stay positive for now.
(The author is Chief Mentor, Indus School of Technical Analysis, Financial Journalist, Technical Analyst, Trainer and Family Fund Manager)
Positive Mkt Breadth
l 1,635 advances
l 943 declines
l RSI is near the bullish zone
l MACD on verge of a bullish signal
l 264 stocks hit
a new 52-wk high
l 168 stocks in upper circuit
