The domestic stock market rose for a second straight session on Wednesday as NSE Nifty settled 51.10 points or 0.43 per cent higher at 11,847.55.
On expiry day of the current derivative series on Thursday, expect the market to remain dominated with rollovers and expiry-led moves.
The 50-stock pack has managed to breach its short-term falling trend line on the upside, but has halted at its short-term 20-day moving average (DMA). The behaviour of the index against this level will be crucial to watch out for.
Thursdays session is likely to see 11,870 and 11,965 levels act as resistance points. Supports may come in at 11,750 and 11,710. In the event of any expiry-led volatility, the trading range is likely to remain wider.
The Relative Strength Index (RSI) on the daily chart stood at 53.8916 and it remained neutral, showing no divergence against the price.
The daily MACD stayed bearish while trading below its signal line. Apart from a white body, no other formation was seen on the candles.
The pattern analysis of the daily chart has shown that Nifty attempted to break above the short-term falling trend line resistance. However, while doing this, it has halted near the short-term 20-DMA, at 11,852.
Despite the index showing a bullish undercurrent, the risk-reward ratio, given the present structure of the charts, does not justifRead More – Source
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