- The market opened marginally higher and spent the entire session in a defined and shaded range without any directional move. After a positive start, Nifty marked another lifetime high of 15,901, and spent the rest of the session in an edge-on trajectory while coming away from its highs. The index spent the entire day in a very low 60-point range before closing with a net gain of 57.40 points or 0.36 per cent.
The market has probably reached a level where it is cautioning at current levels. Classical distribution signals are visible and from a professional point of view, there is no point in chasing the markets blindly. The current technical structure once again points to ample time that the market is giving retail traders to protect their profits and take some money off the table. volatility remained at lower levels; India VIX slipped marginally by 0.74 per cent to 14.6. The Nifty is now clearly left with very limited upsides until it sees long overdue corrective moves.
The beginning of the day may look calm again on Wednesday. The 15,930 and 15,980 levels will act as resistance points. Support will come at lower levels at 15,780 and 15,690 levels. Corrective steps, if any, will make the trading range wider than usual.
The Relative Strength Index (RSI) on the daily chart is 71.69; It remains overbought and also shows bearish divergence against the price. The daily MACD is clearly showing bearish momentum, staying above the bullish and signal lines.
After a hanging man raised over candles last season, this time a shooting star happened. This is also a bearish candle and has the potential to interrupt the uptrend.