Nifty has given a wonderful week. closing 6.5% higher from the previous week. Today however nifty seemed to be ending that Post Budget sprint, and ended forming a Japanese Candle stick pattern, the Dragonfly Doji . The High, close and opening of the day were close to 7500. Yesterday we had mentioned that there are signs of weakness and following that, we saw the momentum indicator RSI ending at the 60 level.
On the intraday 30 mins chart of Nifty, a positive divergence has crept in on RSI indicating weakness.
Among the rest of the NSE Indices we see the Nifty Midcap 50 and BankNIfty outperformed the markets each closing some 1.40% higher. The NiftyRealty sector had been trading very bullish the entire week, closing some 3-4% up, but today was only a percent higher.
On the list of winners we have Justdial leading with a 15% higher closing, followed by kaveri sed which gave a rally of 10% today. The list of bank follows with Syndicate Bank, Oriental bank of commerce , allahabad bank and PNB in the procession.
Looking at some of the winners we see that Justdial has come to the resistance trendline we mentioned yesterday . Kaveri seeds has rallied post the symmetrical triangle mentioned in a previous article. PNB has come out of the bottom with fair volumes support and Vedanta, though crossed out level of 81 and touched 90 today, a spinning top seems to be subdueing the momentum on the chart.
On the list of losers we saw Motherson Sumi down 5%, followed by the IT stocks like Techm, Hcl Technologies losing to the tunes of 2-2.5%.
CHART OF THE DAY
Reliance Industries saw some cooling off today as it approaches the resistance trendline. The rally witnessed in the past few days was on poor volumes and even the RSI indicator has faired poorly on the stock’s chart, having turned lower from the level of 60.
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