The domestic stock on Tuesday opened on a positive note, but soon fell into the red with NSE Nifty slipping below its 20-day moving average. The index, however, made a strong comeback in the second half to settle with a gain of 44.70 points or 0.38 per cent at 11,910.30.
With the 50-stock pack ending near the days high, we may see a flat to mildly positive opening on Wednesday.
However, Nifty still lacks the strength and conviction to make a strong move on the higher side. The weekly options data shows highest Call open interest builtup at 12,000 and Nifty may find resistance at this level.
The 11,940 and 12,000 levels will act as resistance on Wednesday, while supports may come in at 11,850 and 11,780 level.
The RSI on the daily chart stood at 56.63 and has marked a fresh 14-period high. It showed a bullish divergence against the price with the RSI marking a 14-period high, while Nifty not doing so. The daily MACD remained bearish and traded below its signal line.
A long lower shadow formed on the charts. The occurrence of such a candle has little significance in the present technical setup since it has occurred during an uptrend. However, this resembles a Hanging Man, and this may pose minor resistance. However, this requires confirmation on the next day.
Nifty has moved past its short term 20-DMA, and it will be no surprise if it attempts to inch higher. However, the only concern remains pooRead More – Source
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