Finance Update

Trade setup for Friday: Trade setup: Nifty to fall further; any upside may remain capped

Friday’s session will continue to see 11,630 and 11,675 levels working out as resistance.

Apr 11, 2019, 08.58 PM IST

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Friday’s session is likely to see a quiet start and the market may continue to exhibit bearish undertone.

In a listless trading, NSE

Nifty

oscillated in a 40-point range on Thursday, with the index settling with a small gain of 0.11 per cent.

The recovery from lower levels came on the back of short covering, as the gain was seen along with decline in open interest of Nifty futures.

The upcoming session is likely to see a quiet start and we expect the market continue to exhibit bearish undertone. However, given the earnings of TCS and Infosys, some volatile moves in these stocks as well as the IT index may be seen.

Friday’s session will continue to see 11,630 and 11,675 levels working out as resistance. Supports exist at 11,550 and 11,480.

The Relative Strength Index (RSI) on the daily charts stood at 60.1165. It remained neutral and showed no divergence against the price.

The daily MACD was bearish and traded below its signal line. No significant formations were observed on the candles.

The pattern analysis of the daily charts showed that Nifty has been under corrective retracement after marking a double top at the 11,760 level.

At present, the index rests at its short term 20-DMA, which is at 11,548. Any breach of this level may bring immediate weakness for Nifty.

On Friday, expect a rangebound trade with some corrective bias. Any upmove will remain limited in scale.

We continue to reiterate adopting a cautious and stock specific view, while avoiding aggressive purchases.


(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of

www.economictimes.com

.)

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Prakash Poojary
Business Analyst

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