Thursday, 21 June 2018

Market Live: Sensex, Nifty Off Opening Highs ICICI Bank InterGlobe Rally

Posted by suhani varma on Thursday, June 21, 2018 with No comments


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The lack of faster retracement on either side makes us believe that Nifty would extend ongoing consolidation in the range of 10,930-10,650 over the next couple of weeks.

We believe that this consolidation would form a higher base which would set the stage for testing the upper band of the current consolidation levels placed around 10,930.

Structurally, Nifty midcap and small cap have approached their key value area, as both have filled the positive gap (recorded on 7th June) and retraced 61.8 percent of their respective recent up move along with oversold placement of stochastic indicator.

Thus, we believe the Nifty midcap and small cap are approaching their key value area being the placement of Hammer candle (witnessed on early June), signifying limited downside.

Thus investors should focus on accumulating quality beaten down stocks in a staggered manner.

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