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Trade setup: Looks like dollar play is on in market; remain stock-specific
Friday was a day regarding consolidation for the market, because Nifty moved in a precise range before ending the particular session with minor results. After a modestly negative beginning, the index recovered to help trade flat. Even though the listing moved in the positive area for brief periods, this spent most of the session in the negative zone. Within the last few hour of trade, this again moved into the positive area and ended with a slight gain of 13.90 points, or 0.12 per cent.
Emerging markets are usually witnessing dollar play. This recent sharp drop on the US dollar has benefited the particular emerging markets, per se. This particular play on the buck might take some breather as being the Dollar Index is likely to pull back a bit from a bullish divergence from a guide indicator. This may see Markets from the asian continent take a breather and Asia can be no exception.
If the particular Indian equities trade rangebound, or see continued loan consolidation, this should not come as a surprise.
On Monday, Nifty is very likely to see a tentative start, using the 11,250 and 11,285 levels offering sturdy resistance. Supports will come in at 11,150 in addition to 11,065 levels.
The Relative Strength Index, or even RSI, stood at 62.67 on the regular chart; it remains simple and does not show any curve against price. The regular MACD remains bearish because it trades below the signal collection. Apart from a Small White Human body that has occurred, no other constitution were observed.
Nifty offers continued to remain rangebound, placed exactly in the center of the rising channel wherever it is trading presently. The lower rising trend distinctive line of the channel has the 200-DMA very close to that. This 200-DMA, present at 10,850 level, is the nearest the other of the important supports intended for Nifty in the next to term.
The market will continue to display stock-specific behaviour on the wider landscape. This will help certain storage compartments perform better than the others. However, if the current buoyancy in the markets is because of any kind of dollar advantage, this is expected to take some open.
Trader can continue to follow the uptrend, if it continues, with mild exposures and a focus on protecting profits at bigger levels.
(Milan Vaishnav, CMT, MSTA, is a Advisory Technical Analyst and originator of Gemstone Equity Analysis & Advisory Services, Vadodara. He can be reached with [email protected])