Week begins on a flat note - Angel Broking

The week began on a flat note in-line with other Asian bourses. Subsequently, we witnessed significant volatility as indices oscillated within the narrow trading range to close with minimal gains. During the day, Realty, Capital Goods and Metal counters witnessed a strong selling pressure; whereas IT and Auto sectors defended the market. The advance to decline ratio was in favor of declining counters (A=897 D=1279) (Source -www.bseindia.com).

- The '20-day EMA' and the '20-week EMA' are placed at 19591 / 5932 and 19203 / 5823 levels, respectively.
- The Nifty has broken down from the 'Upward Sloping Trend Line' (as shown in the chart).
- The weekly 'RSI Smoothened' and '3 & 8 EMA' are signaling a negative crossover.

The day started on a quiet note but selective mid and small cap counters really got hammered during the session. This influenced the slight shift in trader's sentiments as indices drifted lower during the second half from the day's high. The overall trading range was narrow and hence, there is no major change in the price structure. Therefore, we continue to mention that 19149 / 5823 is likely to act as a crucial support for our market. Any sustainable move below this level would certainly trigger immense pessimism in the market. In this scenario, indices may slide towards 18973 - 18600 / 5777 - 5650 levels.

On the upside, the weekly high of 19742 / 5971 would act as a resistance in the coming trading sessions. Only a move beyond this level may nullify the impact of negative technical evidences. In this case, indices may then rally towards 19768 - 19865 / 5991 - 6025 levels.

Source : Equity Bulls

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