Sharekhan says Nifty is inching towards its short-term target of 13700

Sharekhan says Nifty is inching towards its short-term target of 13700

The Nifty had a gap-up opening and built upon gains as the day progressed. Consequently, the index witnessed seventh straight positive session. The daily Bollinger Bands have started expanding and the expanding upper Bollinger Band is favourable for the trending move. Thus, the index is expected to stay on the upward trajectory. Sharekhan says the Nifty is inching towards its short-term target of 13700. The price action over the last few sessions shows that on the occasions of minor degree dips 20-hour moving average has been acting as a cushion. The average is currently near 13400 and is likely to continue with its role as a near-term support.

Other technical observations on the daily chart, the Nifty is above the 20 day moving average (DMA) and the 40-DEMA, i.e. 13004 and 12588, respectively highlights Sharekhan. The momentum indicator is bearish on the daily chart. On the hourly chart, the Nifty is above the 20-hour moving average (HMA) and the 40-HEMA, i.e. 13409 and 13311, respectively. The hourly momentum indicator is bullish. The market breadth was positive with 1110 advances and 786 declines on the National Stock Exchange.

Ajit Mishra, VP – Research, Religare Broking says that markets traded upbeat for yet another session and gained over a percent, driven by positive global cues and more announcements on the stimulus package. The bulls were in control from the beginning and mostly sectoral indices participated in the move.  As a result, Nifty comfortably settled above 13,500 levels. The broader indices too showed decent traction and gained in the range of 0.4-0.5%. Among the sectoral indices, banking and energy were among the top contributors.

See Zee Business Live TV Streaming Below:

Markets are largely mirroring global cues but the benchmark looks slightly overbought so the possibility of consolidation in the near term cannot be ruled out and it would be healthy for markets. We thus recommend booking partial profit in the existing trades and keep trailing stop losses on every rise. For fresh buying, investors should maintain extra caution on the selection of stocks and maintain a “buy on dips” approach.


Source link

Leave a Reply