NIFTY continued to fiercely consolidate for the second day in a row on Tuesday as it oscillated in a capped range once again to end flat. After opening on a positive note and maintaining modest gains for the most part of the session, the NIFTY slipped in the red and spent the last hour and a half trading around the previous Close. NIFTY finally settled flat posting negligible gains of 6 points or 0.06%.
Being Diwali, Markets shall have a one-hour Mahurat Trading session in the evening. Such sessions obviously see lower volumes and tend to remain range bound. However, in any case the levels of 10600-10650 will continue to pose resistance at higher levels.
With today’s one-hour session being discounted and Thursday being a trading holiday, there is only one full trading day remain in this week. Given this set-up, the Markets are likely to continue to remain range bound and will continue to trade with caution with no major directional bias expected during such times.
However, if we take a cursory technical look, RSI on the Daily chart is 50.5099 and stays neutral showing no divergence against the price. The Daily MACD stays bullish while trading above its signal line. No major formations on Candles are observed.
Broadly speaking, the NIFTY has formed a broad trading range for itself and given the lower tops and bottoms that it has formed over previous months, the zones of 10600-10700 continue to remain important resistance zones that the Markets will have to deal with.
We expect a stable start to the trade and expect the short Mahurat Session to remain range bound with token selective purchases being made.
Milan Vaishnav, CMT, MSTA, Consulting Technical
Member: (MTA, USA / CSTA, Canada / STA, UK) | (Research Analyst, SEBI Reg. No. INH000003341)
Tel: +91-70164 32277 | |