Nifty formed a Doji kind of pattern on the daily chart as the closing was near opening level.
A Doji candle indicates there is some indecisiveness among the bulls and the bears and bounces were being sold in the absence of follow-up buying interest.
Nifty opened higher at 15866 and hit an intraday record high of 15901 amid the rangebound session. Nifty settled at 15869, up 57 points.
Nifty remained rangebound with a positive bias throughout the trading session, ending the day at a record closing high. Banks, select FMCG, IT and auto stocks supported the gains.
Market edged marginally higher in a range-bound session, taking cues from stable global indices. After the initial uptick, the benchmark hovered in a narrow band however movement on the stock-specific front kept the participants busy till the end. Finally, Nifty index ended higher by 0.4% at 15869 level. Amongst the sectoral indices, except healthcare and metal, all the other indices ended in the green wherein banking, realty, and oil & gas were the top gainers. Broader markets too witnessed healthy buying interest as both midcap and small cap ended higher by 0.4% and 0.6% respectively.
Nifty has been trading in an uptrend channel on the intraday chart and currently hovering around the upper band of the same. We’re seeing an early sign of a rebound in the banking index which could trigger a further surge. Traders should continue their focus on the selection of stocks and avoid contrarian bets.
Bulls appear to be dragging their feet in the northern direction by defying gravity as Nifty remained in an extremely narrow trading range of 58 points before signing off the session with a Doji kind of indecisive formation.
However, as the technical picture on oscillator front, across the time frame, is looking extremely stretched in the upward direction we expect limited upsides from current level leaving some sort of uncertain ambience to the index bulls for a long side trade.
If bulls manage to get past 15900 level, as momentum is strongly biased in their favour, Nifty upswing may get expanded around 16066 level.
Contrary to this, a close below today's minor gap zone of 15842/15823 level can induce more selling pressure with a possible target placed around 15600 level. Bigger correction in the index shall not be expected unless Nifty closes below 15550.
Traders to shift their focus towards mid and small cap opportunities where plenty of action is witnessed.
Sector Wise :- Selling saw in the pharma, metal, PSU Bank and power stocks, while oil & gas, bank, IT and realty indices ended in the green.