Business & Investment

Trade settings: Nifty can remain in a wide range of integrations.Volatility can be 1 inch higher

As expected, the domestic stock market entered the modified integration zone on Friday.

Headline index after flat opening Nifty I spent the early morning in the upper limit before slipping into the negative territory. There were no signs of recovery during the day. After corrective action, the index eventually ended with a significant cut of 218.45 points or 1.50 percent.

ET contributor

From a technical point of view, the last session identified 14,650 levels as the middle top of the market. Going further from here, the zones 14,650-14,750 act as very rigid resistors. Sustainable rise will not occur unless the market convincingly exceeds this level. Volatility increased as India VIX rose 1.09% to 22.4225. We are now taking a break from the unabated rise in the market and increasing the likelihood that it will remain broad.

The Monday session may have a slight technical setback in the first deal. However, the 14,425 and 14,500 levels act as resistance points and support is provided at the 14,300 and 14,230 levels.

The Relative Strength Index (RSI) of the daily chart is 58.69. It remains neutral, creating a new 14-period low that is bearish, but now shows any difference to the price. Also, a classic bearish failure swing is observed. The RSI fell below 70 from the overbought zone, pulled back, lowered its lows and fell again. Daily MACD is bearish and trades under the signal line.

Nifty can remain in the broad range of integration it has formed. Even if there is a technical setback at the beginning of the session, it can be marketed. In addition, Tuesday is a trading holiday for Republic Day, so you may need to be careful towards the end of the session.

Volatility can also increase by an inch in the coming days. Monthly derivatives are also scheduled to expire next week, and there will be a significant amount of sector rotation in the market. Broadly speaking, market movements could remain very stock-specific. We recommend that you purchase a new one and maintain a carefully selected condition while maintaining a defensive and cautious outlook for the 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)



Trade settings: Nifty can remain in a wide range of integrations.Volatility can be 1 inch higher

https://economictimes.indiatimes.com/markets/stocks/news/trade-setup-nifty-may-stay-in-a-broad-consolidation-range-volatility-likely-to-inch-higher/articleshow/80434436.cms Trade settings: Nifty can remain in a wide range of integrations.Volatility can be 1 inch higher

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