Begin typing your search...

Indian stock markets sending mixed signals

Equities settle marginally high; Tata Steel top gainer
X

Equities settle marginally high; Tata Steel top gainer

The stock market sustained in the green and able to close in positive territory. The Nifty closed at 14778.70, with a 53.90 points gain. Metal index led the market with a 3.73 per cent gain. Media up by 1.95 per cent and commodity index advanced by 1.33 per cent. Nifty IT, Auto and PSU Bank indices lost 0.16 per cent to 0.69 per cent. All other sectoral indices up by less than half a per cent. India VIX is further down by 3.89 per cent. The market breadth is positive, with 1058 advances and 826 declines.

Once again, the initial euphoria did not sustain. The opening gap-up faced resistance at the downward channel trend line. It formed a long upper shadow candle and closed much below the opening level. Though Nifty closed above the previous day's high, an aggressive profit booking at the resistance is imminently visible. The 14880 resistance is still intact. If Nifty fails to move above 14880 next week, we can assume that the market does not have the strength to break the barrier. The opening gap has not filled, but it closed almost at the day's low. All the hourly candles closed near the lows and failed to move above the previous candles. This shows the weakness in the price. Today's opening high of 14863, with all probabilities, looks like a new swing high. In the last two weeks, price action has created a new resistance zone of 14863-980. A decisive close above this zone with a high volume or sharp upside price action can see the Nifty to scale a new high in the near term. Otherwise, it may retest previous support zones of 14469 and 14264. As of now, the market is not giving any clear signals. It is time to be cautiously optimistic for next week.

T Brahmachary
Next Story
Share it