Very much on the expected lines, the session on Monday took the Markets nowhere as the benchmark index NIFTY50 oscillated in a narrow range and ended the day flat gaining 0.10 points or 0.01%. The NIFTY had shown a modest gain in the morning but it pared those gains during the day. The lower levels too did not sustain and the Index ended practically unchanged from the previous levels. However, the levels of 10785 stood defended as of Monday’s Close.
As we step into Tuesday’s trade, we face a domestic event of Karnataka election results. It is likely to instill in Tuesday’s trade. If we speak purely on technical lines, though the levels of 10785-still remain defended, some volatile moves and oscillations in a defined range cannot be ruled out before Markets resumes its uptrend. Presently, it still continues to remain under consolidation.
Tuesday will see the levels of 10830 and 10895 acting as immediate . Supports come in at 10750 and 10705 zones. Given the likelihood of , the potential range for the Markets remains wider than usual.
The – on the stand at 67.4864. It continues to show Divergence against the price. The Daily stays as it trades above its signal line. On the Candles, a occurred. This is typically a session with very small real body which signifies indecisiveness of the Market participants.
The pattern analysis shows the NIFTY attempting to inch higher after a brief period of consolidation. The NIFTY broke out of a range, marked a high of 10785 and since then it has been consolidating in a much capped range. Though a breakout has been attempted from this congestion zone, a confirmation is awaited.
All in all, we once again expect a tepid start to the trade today. The tentative nature of the Markets was evident today and it is likely to remain evident in the Tuesday’s trade as well until the Markets gets clarity on the Karnataka election results. A hung assembly already seems discounted however, a volatile reaction is likely in event of the results turning out in favor of or against the BJP. We recommend remaining light and moderate on overall positions and adopt highly stock specific approach to the Markets. Though shorts may be avoided, fresh purchases may be kept highly selective in nature. A cautious view on the Market is advised for Tuesday.