Market Technical View

Volatile Yet Positive

The Nifty gained 18 points over the day to close at 5108. A day
of minor gains for the indices yesterday as they started off on a
flat note but rallied extremely well in the first half only to retrace
some of the gains in the second half. The encouraging aspect of
the trading session was the fact that the indices once again
made a “higher high”, which tells us that the momentum is intact.
The markets are gradually turning overbought but before we
witness an effect of the same a “last push” rally to the recent
highs is likely. We do not have any immediate bearish triggers on
the studies and hence holding on to long positions is still
advisable. The DM/ADX indicator is close to hitting a historic low
reading, which means that the study is readying itself for an
important buy trigger that supports our MT target of 5550. The
RSI indicator is yet to move into the overbought zone while
based on Elliot studies the Sensex gets support around the
17100 mark. The Mid-cap sector is likely to make a strong
comeback in the near term. Overall, the uptrend remains intact
and hence an attempt at 5170-5180 is likely in the near term.

Note: More intra-day opportunities will be provided
live during the market hours

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