Once the Nifty manages to surpass 10840, we may possibly see the beginning of Santa rally in our market, which would immediately lift the index towards 10941 and above.
Q) It was an eventful week for Indian market but bulls managed to regain control. What are the charts suggesting?
A) Well, it was certainly an eventful week for our markets and importantly, whatever action happened for the major part, it was only on the domestic factors.
Post the weak session on Monday, our markets opened significantly lower on Tuesday, taking cues from the exit poll numbers and the abrupt resignation of RBI Governor Dr. Urjit Patel.
However, market left everything behind and had a spectacular recovery on the same day to defend key levels. The bullishness extended on the following days as well as market gladly welcomed the appointment of a new governor Shaktikanta Das.
The last couple of days was a bit subdued, but eventually Nifty concluded the week by adding over a percent to the bulls’ kitty.
Q) What is your call on the small & midcap? What does the trading behaviour tell you?
A) Tuesday’s session was a critical one for our market and the way it recovered, it certainly set the tone for some optimism. The low during the day precisely coincided with the 61.8% Fibonacci retracement of the recent up move.
In addition, the other heavyweight index (Bank Nifty) managed to reclaim its position above the 200-day SMA, which was a sign of strength. But, the real highlight was the smart rally in ‘Midcap’ index, which continued for one more day as well.
In the last couple of sessions, the index struggled after reaching the crucial point of 10,840. We saw some tentativeness around it and hence, can be termed as a corridor of uncertainty.
Let us understand why this level has some significance? On the hourly chart, we had a breakdown from this crucial swing low on December 05. Hence, this previous support is now acting as a resistance.
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