Nifty forms 'Doji' pattern, may consolidate unless index breaks 10,985 on upside

The Nifty50 closed rangebound session on a positive note Thursday and formed a 'Doji' kind of indecisive formation on daily candlestick charts. Positive global cues and the rally in Reliance Industries, TCS, HDFC and ITC helped the benchmark index end higher.

The 8 percent rally in Yes Bank after the appointment of Ravneet Singh Gill as new MD & CEO also lifted sentiment.

A 'Doji' is formed when the index opens and then closes approximately around the same level. However, it remains volatile throughout the trading day which is indicated by its long shadow on either side. The candle appears like a cross or a plus sign.

A Doji usually means indecisiveness among the bulls as well as bears, hence there could be some consolidation in coming sessions before directional move on either side, experts said.

The Nifty50 after opening marginally higher immediately slipped into red and hit an intraday low of 10,798.65, followed by rangebound move. The index after consolidation gained strength in late trade and touched a day's high of 10,866.60. It closed 18.30 points higher at 10,849.80.

Interestingly Nifty appears to be taking support around its 100-day simple moving average (10,795) which in the past acted as a resistnace point.

"Inline with its recent behaviour Nifty50 once again attracted buying on a dip towards its critical short term support points which resulted in a Doji kind of indecisive formation with a slightly longer lower shadow hinting positive price action for the day," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said lack of follow through selling to Wednesday's fall is suggesting that indices are caught up in a sideways zone and unless they emerge out if this sideways range a directional move will not emerge.

Today's bounce also coincided with the test of its 14-day old ascending channel support whose value is placed around 10,792 levels, he added.

Hence, he said in near term 10,790 appears to be a critical support breach of which may strengthen bearish sentiment for the short term with targets placed around 10,590 kind of levels where as upsides shall remain capped around 10,950.

Source:https://www.moneycontrol.com/news/business/markets/technical-view-nifty-forms-doji-pattern-may-consolidate-unless-index-breaks-10985-on-upside-3431151.html

If you need more information about the Stock Market:

 Visit: http://www.tradeindiaresearch.com

International Market Updates

If you need more information about the Stock Market:

 Visit: http://www.tradeindiaresearch.com 

Sensex trades lower, Nifty around 10,800; Tata Motors, Infosys major losers

  

Market Opens: Indian indices started the day on flat note with Nifty trading below 10,850 level.

The Sensex is down 2.76 points at 36105.71, while Nifty is down 2.10 points at 10829.40. About 374 shares have advanced, 306 shares declined, and 29 shares are unchanged. 

Bharti Airtel, Bharti Infratel, Vodafone Idea, Hero Motocorp, ITC, Zee Entertainment, Asian Paints are the major gainers, while United Spirits, Pidilite, Interglobe are among major losers.

Rupee Opens: The Indian rupee opened higher by 7 paise at 71.27 per dollar on Thursday versus previous close 71.34.

Source:https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-bse-nse-sensex-trades-lower-nifty-around-10800-tata-motors-infosys-major-losers-3427891.html

If you need more information about the Stock Market:

 Visit: http://www.tradeindiaresearch.com 

Opening Bell

If you need more information about the Stock Market:

 Visit: http://www.tradeindiaresearch.com 

Nifty forms bearish candle after consolidation, 10,790 crucial for bulls

The Nifty50 after rangebound trade fell sharply in last hour of trade on Wednesday and formed big bearish candle on the daily charts, weighed by index heavyweights HDFC Bank, Infosys, HDFC and Reliance Industries.

ITC was the biggest loser, down over 4 percent after margin disappointment in Q3.

The immediate crucial support for the index could be 10,790, experts said, adding if it breaks that level then there could be sharp fall in coming sessions.

Overall index has got stuck in a broader trading range of 10,700 to 10,985 zones and requires a decisive range breakout for next leg of rally, experts said.

The Nifty50 after opening flat remained rangebound, but started falling in last hour of trade and hit an intraday low of 10,811.95. The index closed 91.30 points lower at 10,831.50 after breaking its consolidation range of last five trading sessions.

"Recent breakout appears to have whipsawed as Nifty50 signed off the session with a strong bearish candle from around critical resistance point of 10,950 levels. However, still larger picture remains that of sideways as Nifty50 is unable to attract any follow through action in recent past," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

He said interestingly last 13 days of price action carved out a small ascending channel whose support is placed around 10,790 levels.

In case if Nifty slide continues below 10,790 levels then based on this channel breakdown another 200 points fall can be expected with a initial target of 10,571 levels, according to him.

Mazhar said in between Nifty may find some meaning full support around 10,690 levels where as upsides shall remain capped around 10,950. Hence, aggressive traders can go short on Nifty if it trades below 10,790 for one hour and look for a target of 10,600, he advised.

India VIX moved up by 0.58 percent to 18.08 levels. Volatility has to cool down below 16 zones to get a decisive range breakout.

On the option front, maximum Put open interest (OI) is at 10,500 followed by 10,800 strike while maximum Call OI is at 11,000 followed by 10,900 strike.

Meaningful Call writing is at 11,000 followed by 10,900 strike while Put unwinding is at most of the immediate strikes. Option band signifies a trading range in between 10,700 to 11,000 zones.

"Nifty index started to form lower highs - lower lows on daily scale from last two sessions as it failed to surpass multiple hurdle of last nine weeks at 10,985 zones," Chandan Taparia, Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services told Moneycontrol.

He said now if it sustains below 10,880 zone then it may drift towards it 50 DEMA and next major support at 10,777 then 10,700 zones while on the upside hurdles are seen at 10,929 then 10,985 levels.

Bank Nifty finally broken its consolidation band of last five trading sessions from 27,350 to 27,600 zones and slipped towards 27,190 levels. It closed 231.50 points lower at 27,250.75 and formed a bearish candle on daily scale as supply pressure is visible at higher levels.

"It has taken multiple hurdle at 27,600 zones and resistances are shifting lower. Now it has to cross and hold above 27,350 zones to witness an upmove towards 27,600 then 27,750 zones while immediate support exists at 27,150 then 27,000 zones," Taparia said.

Source:https://www.moneycontrol.com/news/business/markets/technical-view-nifty-forms-bearish-candle-after-consolidation-10790-crucial-for-bulls-3426401.html

If you need more information about the Stock Market:

Visit: http://www.tradeindiaresearch.com

NCDEX Support and Resistance

If you need more information about the Stock Market:

 Visit: http://www.tradeindiaresearch.com 

Sensex continues to trade flat, Nifty above 10,900; metal stocks gain

Market opens It is a flat start for the market on Wednesday morning, with the Nifty holding 10,900.

All sectoral indices are giving mixed trends, with gains visible among consumption and pharmaceuticals, while automobiles are showing minor signs of pressure. 

The Sensex is up 23.88 points or 0.07% at 36468.52, and the Nifty up 2.10 points or 0.02% at 10924.90. The market breadth is positive as 273 shares advanced, against a decline of 114 shares, while 36 shares were unchanged.

Yes Bank and Asian Paints were the top gainers, while Infosys, Hero MotoCorp, and Vedanta have lost the most.

Source:https://www.moneycontrol.com/news/business/markets/market-live-sensex-continues-to-trade-flat-nifty-above-10900-metal-stocks-gain-3422411.html

If you need more information about the Stock Market:

 Visit: http://www.tradeindiaresearch.com