Contrary to a weak global technical setup, the Indian market made a strong showing rather than showing any corrective trend after a calm start to the day and continued to consolidate.
In the first hour of the morning session, the Nifty had slipped sharply and reached the low point of the day. In a strong performance, the index recovered from its low point by midday trading and spent the last hour moving in a narrow range. The headline index closed flat with a marginal decline of 13.95 points (-0.08 percent).
From a technical point of view, the market has been consolidating for the past five sessions. We expect this resilient performance to continue. The 17,450-17,500 area is now an important area to watch; Any permanent bounce will be above this area. Until that happens, we will continue to see major indices consolidating in this manner. In the coming sessions, stocks/sectors improving their relative strength against the broader markets should outperform.
India VIX rose marginally by 0.59 percent to 14.0250. On Tuesday, a stable start can be seen in Nifty. The 17,405 and 17,480 levels will act as potential resistance points, while support will come at the 17,310 and 17,265 levels.
The relative strength index (RSI) on the daily chart stood at 80.67; It remained in the overbought zone, looking neutral and not showing divergence against the price. MACD turned bullish and remained above its signal line. A Doji emerged on the candles. This reflects a lack of directional consent among the participants. However, if we analyze it from a macro perspective, it is more because of the ongoing strength in the market.