While keeping the prevailing uncertainties in Karnataka aside, though it does have some short-lived sentimental effect, the present technicals continue to point towards some more consolidation in the Markets. We are likely to see a quiet opening on Thursday, the previous low and its range would be important support to watch for. The levels of 10680-10700 would be immediate levels wherein the NIFTY might consolidate again.
Thursday will see the levels of 10745 and 10785 acting as immediate resistance levels. Supports come in at 10680 and 10625 zones.
The –RSI on the is 60.1660. It continues to remain neutral showing no divergence against the price. The Daily stays while trading above its signal line. On the Candles, a was formed. It has a small real body and signifies a session full of indecisiveness on part of market participants.
Pattern analysis reveals that NIFTY has stalled its up move that it had resumed after suffering a throwback. NIFTY has broken out of a broad formation as evident from the Charts. However, even after a throwback and subsequent resumption of up move, the NIFTY still appears to remain under consolidation.
Overall, though we can expect some stability to reign in, is still likely to remain very much ingrained in the session. Though any structural breakdown may not happen, but still oscillations within a given range are likely to remain volatile. Also, the higher levels of NIFTY PCR (Put to Call Ratio) still remain a concern. We expect consolidation to continue to happen and the NIFTY is likely to oscillate keeping the range of 10785-10930 as its major for the immediate short term. Highly cautious and stock specific approach is advised for the day.