Nifty appears to be making an attempt to stabilize today as it sustained above previous session's low of 10294 level before signing off the session with a positive tick on marginal gains, and formed bullish candle on daily chart as closing was higher than opening level.
Nifty after opening sharply lower at 10334 turned volatile. Nifty hit an intraday low of 10334 in the morning and high of 10545 in the afternoon, before closing 6 points higher at 10458.
Hence, sustaining above 10294 level sideways consolidation with positive bias can be expected. In case Nifty manages to trade above 10637 level consistently in next trading session then eventually in next couple of days it can aim to test the bearish gap, registered on 9th of March present in the zone of 10751/10827 level.
It could just be pause after the sharp slide and need support from the global markets for further bounce however it seems difficult at present, citing the rising figures of fresh coronavirus cases worldwide. We advise limiting leveraged positions and preferring hedged bets. Investors, on the other hand, may continue with buying in fundamentally sound counters in a staggered manner.
Expect the consolidation to continue in coming sessions till the index holds 10294 level and advised short term traders to avoid directional bets.
Nifty respected Monday’s low of 10294 level which is a positive sign.In case Nifty manages to trade above 10637 level consistently in next trading session, then eventually in the next couple of days, it can aim to test the bearish gap, registered on 9th March 2020, present in the zone of 10751 /10827 level.
Sector wise : Except FMCG all other indices ended lower. Midcap and Smallcap indices also ended lower.
- Someshwar, Technical analyst, Equidius Research