IT, pharma scrips lead 67 pts rise
The benchmark index, the Nifty closed with 67.40 points or 0.52 per cent higher at 12,926.45. The IT and Pharma indices led the market today. The Nifty IT index gained by 2.79 per cent, and Pharma index was up by 1.83 per cent.
The benchmark index, the Nifty closed with 67.40 points or 0.52 per cent higher at 12,926.45. The IT and Pharma indices led the market today. The Nifty IT index gained by 2.79 per cent, and Pharma index was up by 1.83 per cent. The BFSI sectors are laggards today. Bank Nifty fell by 0.72 per cent, and the Financial Services index declined by 1.07 per cent. Metal, Midcaps are also in the limelight today. The overall market breadth is positive, with more number of gainers. HDFC fell sharply by 3.6 per cent. ONGC was the top gainer in the index by 6.77 per cent. As expected, the Nifty consolidated within the range for another day. Opened at previous high and drifted during the first two hours of trading. Later, with the support of IT and pharma sector leadership, it regained the strength and reached near to the high. It registered another lifetime high today. It closed below the opening and formed bearish hanging man candle. For the five days, the Nifty is not giving any convincing clues. It is forming bearish or indecisive candles.
Last week, the volume was lower than average and the previous week. Even today, the selling volume is higher in the derivative segment. Except for last Wednesday, all the five days the selling volume is higher.
As the Nifty is trading in the zone and negative volume is more, indicating the topping formation and the distribution. Unless it crosses 12,970 with a big bar and positive volume, it is better to avoid long positions. At the same time, the Nifty is taking support at 8EMA for the past three days.
A close below 12,820 will be a weak signal. Between 12,820 and 12,970, we may not find a decisive trade on either side. Below this zone, the minor support placed at 12,730 and the major support at 12,626. The momentum declined further and the volatility index India VIX rose by six per cent and moved above the 20 levels. As expected, the consolidation with increased volatility is the order of the day. Trading in the current zone of consolidation is not an easy task. Try to be patient for the right opportunity on either side.
The author is a Financial Journalist, Technical Analyst, Trainer, Family Fund Manager.