Day trading guide for today: After showing a narrow range movement in the last few sessions, Indian stock market slipped into downside breakout on Friday session. NSE Nifty snapped its 4-week gain and posted 0.23 per cent weekly loss last week. BSE Sensex went off 87 points and closed at 61,663 whereas Nifty Bank index finished 20 points lower 42,437 levels. Broad market continued to underperform as Advance/Decline ratio remained much below 1:1.After showing a narrow range movement in the last few sessions, Indian stock market slipped into downside breakout on Friday session. NSE Nifty snapped its 4-week gain and posted 0.23 per cent weekly loss last week. BSE Sensex went off 87 points and closed at 61,663 whereas Nifty Bank index finished 20 points lower 42,437 levels. Broad market continued to underperform as Advance/Decline ratio remained much below 1:1.
According to stock market experts, cues from the US Fed members hinting at continued rate hikes on Thursday pricked sentiments globally. They went on to add that positive chart pattern like higher tops and bottoms continued on the daily chart and Nifty is currently in line with the formation of new higher bottom formation. Nifty on the weekly chart formed a small negative candle with minor upper and lower shadow. This signal a formation of high wave type candle formation and this reflects high volatility at the highs.
Stock market today: Intraday strategy for Monday
Speaking on intraday trading tips for Monday, Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, “The Nifty continues to show consolidation movement with weak bias at the highs and still there is no formation of any significant top reversal pattern. Further consolidation or minor weakness from here could find support around 18100 levels and we expect upside bounce from the lows.”
“In last few trading sessions, Nifty has consolidated in a narrow range which seems to be a time-wise correction within an uptrend. The ’20 DEMA’ support for Nifty is placed around 18050 while the momentum readings too are still in buy mode and have not given any negative crossover since last few weeks. The global factors such as US bond yields and the Dollar Index which had recently cooled-off from the highs has not seen any upside move again. Considering all these factors, we advise traders to continue to trade with a positive bias as the index could rally higher in upcoming sessions,” said Ruchit Jain, Lead Research at 5paisa.com.
