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Tech View: Tech View: Maintain Defense.Market direction consensus is on the downside

The market continued to test the bottom of Broad on the day Indian stocks continued to take corrective action Integrated zone And the day ended with a cut. In a good trading system Nifty I opened it with a flat note in the morning and immediately saw a sharp fix dip. The market recovered from a low level to the session and leveled off again, but in the second half there was another sale and the market fell much.

The headline index tested fresh lows during the session and ended with a loss of 133 points, or 0.93 percent.

When the market opens after Tuesday’s trade holiday for Wednesday, Republic Day, it will have to adapt to the global trade setting, which remains particularly weak. Sessions start weakly and Nifty is likely to open under the support lines of recent integration zones.

If that happens, the 14,250 level will be the main resistance for the foreseeable future. This will be the penultimate session of the derivatives series in January. Weekly option expiration data showed the highest put OI concentration at the 14,000 level. This indicates that this level acts as an immediate support for Nifty.

On Wednesday, levels 14,300 and 14,335 are likely to serve as key points of resistance, and support will be provided at levels 14,100 and 14,015.

The Relative Strength Index (RSI) on the daily chart was at the 53.87 level. It marked a fresh 14-period low, which is a sign of bearishness. However, the RSI remains neutral and shows no difference in price. Daily MACD is bearish as it trades under the signal line.

A strong black candle appeared on the chart. This shows that the directional consensus among market participants is on the downside.

Pattern analysis showed that Nifty finished below the short-term 20-DMA, which is currently at the 14,308 level. This level can also provide some resistance as the market attempts to pull back.

Overall, market bias may remain weak in the short term. Nifty shall only consolidate above the 14,250 level to prevent the downside of the increment. As long as Nifty is below this point, it offers room for further weaknesses.

Defense stock preferences were revealed on Monday, and this trend could continue in the next trading session. We recommend a cautious approach that day.

(Milan Vaishnav, CMT, MSTA are consulting technical analysts and founders of Gemstone Equity Research & Advisory Services in Vadodara. His contact information is milan.vaishnav@equityresearch.asia)



Tech View: Tech View: Maintain Defense.Market direction consensus is on the downside

https://economictimes.indiatimes.com/markets/stocks/news/tech-view-stay-defensive-markets-directional-consensus-is-on-downside/articleshow/80464731.cms Tech View: Tech View: Maintain Defense.Market direction consensus is on the downside

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