13 June 2018


Bulls got nervous at higher levels as nifty future ended Wednesday session at 10849 with minor gains of 10 points. Nifty formed a new swing high at 10873 level, but market breadth for the day was slightly negative. Sensex and Nifty rose for the third straight day just ahead of the US Fed policy outcome today. Expectation are like that a rate hike this time around is almost a done deal. The markets had risen earlier in the day due to a solid monthly industrial growth data released on Tuesday, which had boosted market sentiment. The country’s industrial output rose by 4.9 per cent in April, up from the 4.4 per cent growth seen in March due to a turnaround in capital goods production as well as an uptick in overall manufacturing growth. The Sensex climbed 47 points, , to finish at 35739.

The Nifty future ended the day at 10849, up by 10 points. Towards the end of the day, the index rolled down and closed below the band and the trendline. On the way down, Nifty broke a rising trendline on the hourly chart. The chart revealed that a distribution is under way since the past couple of sessions. The hourly momentum indicator confirmed the same, as it showed negative divergence. The bearish view holds true as long as the index trades below 10900. The 10925 and 10975 levels may act as immediate resistance levels for Nifty, while supports may come in at 10800 and 10725 levels.
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Resistance: 10900, 10925, 10950
Support: 10800, 10775, 10750

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