The domestic equity market saw yet another session of modest uptick on Friday, as NSE Nifty ended with a gain of 0.59 per cent.
We expect a soft to mildly positive start to the trade on Monday. Even if Nifty witnesses a small upmove, the 11,760 level may act as a stiff resistance. No runaway rally is expected until this level is taken out. Until then, all upsides will continue to remain vulnerable to profit taking.
Mondays session is likely to see 11,700 and 11,760 levels act as stiff resistance. Supports may come in much lower at 11,600 and 11,480. In event of a correction, downside range is likely to remain wider than probable upsides.
The daily RSI stood at 67.8115 and it remained neutral against the price. The MACD remained bullish, but was seen on the verge of reporting a negative crossover over the coming sessions. No significant formation, apart from a white body, emerged on the candles.
The pattern analysis of daily charts showed that Nifty has clearly marked a double top at 11,760. This level was earlier tested at the end of August and then retested in April. These tops, seven months apart, lend strong credibility to this double top resistance point.
Few indications still persist on the charts that show upmoves can be deceptive until the 11,760 level is taken out comprehensively. In the given circumstances, we recommend traders to limit exposures only to defensive stocks and to sectorRead More – Source