As we enter Tuesday’s trade, we expect such consolidation to continue to persist in the Markets. Though downsides, if any, may be limited, the zones of 10610-10640 will continue to pose good resistance to any up move in the immediate short term.
Tuesday will see the levels of 10610 and 10650 acting as immediate for the Markets. On the downsides, the NIFTY may find support near in the 10540 and 10510 levels.
The – on the is 63.8164. It has marked a fresh 14-period high once again but remains neutral to the prices showing no divergences. Daily stays while trading above its signal line. A , indicative of indecisiveness of the Market participants occurred on Candles. Apart from this, no major formations were observed.
Pattern analysis shows that despite evident display of buoyant undercurrent, NIFTY has not been able to move past the important pattern of 10610-10640 zones. This is the upper area of the broad trading range NIFTY had developed over past couple of months.
Fresh shorts were also seen being created as the NIFTY’s future shed nearly its entire premium. We expect such consolidation to continue to exist in the immediate short term. We also expect to persist owing to expiry of the current derivative series. There are high probabilities that Markets continue to witness profit taking bouts from higher levels. We reiterate to avoid creating any major shorts. It is further advised to continue to utilize and downsides to make select purchases with any downsides or profit taking bouts that the Markets may offer. While keeping overall positions moderate, cautious view is advised for the day.
STOCKS TO WATCH:
Fresh shorts were seen being added in IDFC Bank, JSW STEEL, SOUTH BANK, DHFL , ITC , WIPRO , ICICI Bank, STEEL AUTHORITY, DISH TV, ONGC , HDFC , TATA GLOBAL and NCC .