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Index Consolidates Amidst Buying Momentum In Midcap Stocks

The indices did not see any significant move in Tuesday’s session but the stock-specific moves were positive as the cash segment stocks witnessed outperformance

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The indices traded in a narrow range in Tuesday’s session but the broader markets kept the momentum intact. Amidst stock-specific movement, Nifty ended the day around 17770 with marginal gains while the Bank Nifty index ended on a flat note.

Nifty moved higher gradually and tested the 17800 mark during the day. The indices did not see any significant move in Tuesday’s session but the stock-specific moves were positive as the cash segment stocks witnessed outperformance.

The derivatives data continues to be positive as the FIIs have added some long positions too post the recent short covering. Their ‘Long Short Ratio’ has improved to around 44 per cent now.

The immediate support for Nifty is placed in the range of 17720-17680 while the Bank Nifty support is placed around 17350.

On the hourly chart, the Bank Nifty is showing some divergence as a new high in price is not confirmed by a new high in the RSI oscillator.

Such divergences can lead to some correction or consolidation and hence, one should keep a close watch on this development. Although, the positional structure remains positive and hence one can keep a ‘Buy on the dip’ approach.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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Ruchit Jain

The author is Lead Research, 5paisa.com

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