Analyst Somesh View - Closing Comments on 07th AUG 2021

2021-09-07 17:18:16 By Somesh

img

Nifty formed a small bearish candle on the daily chart as it closed with marginal losses and negated higher highs higher lows formation of the last seven sessions.

Nifty has been trading in higher high and higher low formation, which suggests strength in the counter.

Nifty recovered its early losses to touch a new high of 17436. Nifty settled at 17357, while the BankNifty ended at 36468with 0.3 percent losses.

Domestic market traded with high volatility as investors locked in gains from the recent rally & global factors. However, the broad market maintained its buoyancy in segments, which are bound to benefit from unlocking. European shares traded with cuts ahead of the European Central Bank’s policy meeting on Thursday, where talks regarding the tapering of asset purchase program are likely to take place in the backdrop of rising eurozone inflation.

Nifty traded volatile in a range and settled marginally lower, taking a pause after the recent surge. Amongst sectors, IT and banking were laggards whereas telecom, FMCG, and consumer durables ended with gains. The broader markets also witnessed profit taking and ended lower.

 In absence of any major event, global cues would continue to dictate the trend. Indications are in the favour of some consolidation or profit taking thus we recommend maintaining extra caution in stocks selection. On the benchmark front, Nifty has immediate support around the 17200/17250 zone.

In the case of Nifty, the initial dip found support near the 20 hour moving average & lower end of a rising channel on the hourly chart. Thereon the index attempted a bounce however faced resistance near the hourly upper Bollinger Band & slid down again towards the end of the session to break the lower channel line. At the end of the day, the index formed a bearish outside bar on the daily chart. Also, the daily chart shows that the index is forming a distribution for the last couple of sessions near upper end of a multi week rising channel.

Nifty traded volatile in a range and settled marginally lower, taking a pause after the recent surge.

On the hourly chart, the index has been finding resistance from the upper band of Bollinger, crossing the same can led to further upside movement.

Nifty witnessed some volatile movements and an attempt to hold the 17300 level. If the market sustains above 17200/17250, it is expected to gain momentum, leading to an upside projection till 17400/17450 level.

Sector Wise :- IT and banking were laggards, whereas telecom, FMCG, and consumer durables ended with gains. Broader markets also witnessed profit-taking to end lower.


Closing Comments

Expert's View


అవకాశం ఇచ్చిన tv5 నాయుడు గారికి | ఆదరిస్తున్న మీకు నా ధన్యవాదాలు

Trending