Nifty closed with a mere gain of 11 points on a close to close basis. The market has been dull with not much activity coming in from the index. The resistance remains at the level of 7750 whereas the support is the level of 7550. On the intraday 10 mins chart, Nifty can be seen trading within the closed bounds of 7650 and 7600. Any breakout on either side of the bound will be an indication to the future move of the index, subject to the behaviour of Volume and RSI.
Other than Nifty, if we take in the other indices, the NIFTY realty and Infra indices have topped the chart whereas the Nifty Bank and Nifty IT have been the biggest losers of the day.
On a stockwise performance, there has been better activity relative to the index. Some steel stocks namely tatasteel, hindalco and jswsteel managed to come out as toppers amongst many others listed below.
On the losers end we see some banking names like Axis bank, canara bank, ICICI bank etc which have lost to the day.
The international picture:
Crude oil is trading on stronger grounds today with a gain of almost 2.67% where the gold and silver are dipping more than half percent lower. The DJIA and NASDAQ futures are also trading positive indicating that when the US markets open today evening a better performance maybe expected in relation to yesterday. The US indices DOW and NASDAQ lost almost a percent due to the weakness in almost all the other international indices. The European indices FTSE 100, CAC 40 and DAX are all trading with a strong positive number, except for CAC 40 which is moderately positive. Among the Asian indices, the Shanghai has closed mildly negative, however if we see the chart we can infer that the second half of the trading session was a comeback after a weak first session.
CHART OF THE DAY
Tata steel has formed on its daily chart an eminent pattern called the Rising Method. Ideally it’s called the Rising three method as three small bodied candle sticks are formed within the body of a strong green candle however in this case we have four small candles. Dismissing that factor is the occurrence of the strong green candle on today’s trade which has closed above the high of the pattern. This a bullish continuation pattern which hints at better days to come. Adding to the positivity is the strong volume witnessed today. However a negative divergence on the RSI is dampening the optimism and raising doubts. In addition to this, an analysis of the weekly chart reveals that the level 330 is a level of strong action as witnessed on the weekly chart. Given these factor and mixed signals we can expect the stock to either consolidate here till the market sentiments improve and in the scenario of market sentiments worsening we may see tatasteel also taking a temporary correction. The long term prospects of the stock remain strong irrespective of this temporary patch in the beauty of its chart.
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