Home Market Trade setup: Nifty to fall further; any upside may remain capped

Trade setup: Nifty to fall further; any upside may remain capped

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In a listless trading, NSE Nifty oscillated in a 40-point range on Thursday, with the index settling with a small gain of 0.11 per cent.

The recovery from lower levels came on the back of short covering, as the gain was seen along with decline in open interest of Nifty futures.

The upcoming session is likely to see a quiet start and we expect the market continue to exhibit bearish undertone. However, given the earnings of TCS and Infosys, some volatile moves in these stocks as well as the IT index may be seen.

Fridays session will continue to see 11,630 and 11,675 levels working out as resistance. Supports exist at 11,550 and 11,480.

The Relative Strength Index (RSI) on the daily charts stood at 60.1165. It remained neutral and showed no divergence against the price.

The daily MACD was bearish and traded below its signal line. No significant formations were observed on the candles.

The pattern analysis of the daily charts showed that Nifty has been under corrective retracement after marking a double top at the 11,760 level.

At present, the index rests at its short term 20-DMA, whicRead More – Source