Nifty managed to trade above 4800-mark and closed marginally lower in step with negative global cues. The market had another choppy sessio...
Nifty managed to trade above 4800-mark and closed marginally lower in step with negative global cues. The market had another choppy session and traded within a very narrow range, finally closing in red with a hammer candlestick pattern. This signals that Nifty may continue to face resistance at 4850-4890 levels, which has been acting as a crucial resistance area. So, a close above these levels will be important for Nifty to move higher in short term. On daily charts, 4575 on Nifty and 15275 on Sensex will act as crucial supports in near term, as a bullish island pattern has been formed at these levels. So, unless the market breaches these levels on downside, we maintain our short-term bias up for the target of 5000 on Nifty and
16600 on Sensex. Nifty is currently trading above 20-daily moving average (DMA) and 40-DMA i.e. 4664 and 4592 respectively, which are crucial support levels going forward. The momentum indicator (KST) has turned up and has given positive crossover.
On hourly chart, Nifty is trading above 20-hourly moving average (HMA) and 40HMA i.e. 4809 and 4783 respectively, which are crucial support levels in immediate run.
Momentum indicator (KST) is on the verge of giving a positive crossover and is trading around zero line. Market breadth was marginally negative with 632 advances and 638 declines on NSE.
Nifty was 20 points down and Sensex 50 points lower on closing bell. Of the 30 Sensex stocks, State Bank of India (up 2%) and Hindustan Unilever (up 2%) were topped the list whereas Sterlite Industries (down 3%) and Hindalco Industries (down 2%) were at the bottom. Metal stocks traded with positive momentum, while cement stocks were in red.
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