The next week is cut, Thursday is a trading holiday due to Maharashtra day. We can write about more than one thing about the markets may concern in the coming days. It may be a forecast for low growth through IMF, which includes India and other economies; It may also be likely to increase geographical political tensions between India and Pakistan. However, all of these things said, the markets are also at an important technical stage. The Nifty has closed on 200-DMA placed on 24050. In addition, the index also defended a 50-week MA at 23,925. This creates a crucial support field for 23,900-24,050 zones Nifty. Consolidation is imminent because the Nifty has risen more than 11% from its April 07, and small corrective retracements cannot be ruled out. However, if there is a breach of 23,900, some extended retracements in the markets can be seen.
Etmarkets.comWeekly RSI is at 55.46; It remains neutral and does not show any variation against the price. Weekly MACD is booming and its signal is above line. The same candle of the shooting star has emerged, which has increased the probability of potential consolidation.
Importantly, the composition of any candle should not be traded in isolation and must be used in conjunction with the overall technical setup.
The pattern analysis shows that the Nifty has defended the 50-week MA placed at 23,925. The index has also tested increased trendline resistance; He violated this trendline support, and is now expected to act as a resistance. Overall, there is a crucial support zone for the Nifty of 24,050-23,900. If violated at the level of 23,900, it can lead to additional weakness.
Overall, the technical design of the market suggests that it is time to focus more on protecting benefits at a high level. When there may be some reactions by the markets due to external factors, the underlying warmth remains intact. The only thing that needs to be careful about is natural corrective retracements that may be followed by the kind of EP in the markets that have grown. Investors must keep fresh purchases in low-beta stocks that have strong relative strength. With the visible visible rotation of the field, a cautious point of view is advised for the day.
In our appearance on related rotation graphs, we compared different sectors against the CNX 500 (Nifty 500 index), representing more than 95% of all the shares listed.
Etmarkets.comEtmarkets.comRelated Rotation Graph (RRG) shows that the Nifty PSU Bank index has turned within the leading quarter. Consumption, goods, financial services, infrastructure, metal and Nifty bank indicators are also within the leading quadrant. While the relevant pace is seen in the metal and financial services index, they are likely to move on to relatively widespread markets.
The Nifty Services Sector Index has turned within a weak quadrant.
The midcap 100 and the realty index shows a strong improvement in their relative motion while living within the Legion Legs. The IT and Auto toe index continues to stay within the Legging Quadrant.
The Media Index reforms are turned within the quadrilateral, showing the potential onset of its related outperformance phase. The Nifty PSE, EnerGy Raza and FMCG indicators are also within the correctional quadrant.
Important Note: RRG ™ charts show the relevant strength and motion of a group of stocks. In the above chart, they show relevant performance against the Nifty 500 index (extensive markets) and should not be used directly as signs of purchase or selling.
Milan is the founder of Vaishnav, CMT, MSTA, Consulting Technical Analyst and EquitySarch.sia and Chartwizard.AE and located in Vadodara. It can be reached at Milan.Shishnav@equityresearch.asia
(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)
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