Nifty at days high; Reliance hits fresh 52-week high!

Reliance Industries and ONGC have combinedly contributed as much as 35 points to Nifty’s kitty.  

Market Update at 02:15 PM: Nifty has surpassed its prior trading session high and it is seen trading near the day’s high with gains of over half a per cent. It is now inching closer to the 17,800 mark. Reliance Industries and ONGC have combinedly contributed as much as 35 points to Nifty’s kitty.   

Among the sectoral indices, Nifty Energy and Nifty Media turned out to be the top gainers. On the flip side, Nifty Realty and Nifty Pharma index were the top losers.   

Talking about the performance of broader markets, Nifty Midcap 100 and Smallcap 100 have added 0.33 per cent and 0.54 per cent, respectively.   

On the option’s front, open interest addition is seen in the broad range of 17,600-17,700 on the put side. Meanwhile, unwinding is seen in the broad range of 17,600-17,700, on the call side. 

Market Update at 10:10 AM: Indian benchmark indices were seen trading in red on Tuesday with Sensex & Nifty plunging 0.16 per cent and 0.21 per cent, respectively. Meanwhile, the broader markets were seen outperforming the frontline gauge with Nifty Smallcap 100 adding 0.34 per cent while Nifty Midcap 100 hovering around the neutral line. Overall, the market breadth remains buoyant as advances have outpaced declines.   

Among the sectoral indices, Nifty Energy is the top gainer. On the other hand, Nifty Realty witnesses profit booking and it is the top loser.   

Among stock-specific action, ONGC and Coal India soared by nearly 6.5 per cent and 3.3 per cent, respectively. With this, both hit a fresh 52-week high. 

Nifty opened the session with a gap-up and extended its upmove in the initial half of the trading session, making a high of 17,750.90. However, it failed to sustain at higher levels and trimmed its gains to finally settle below the 17,700 mark with gains of 0.91 per cent. Overall, the market breadth was in favour of advances as about 1,510 shares have advanced and 545 shares declined. Interestingly, the FIIs and DIIs both were net buyers on Monday.    

Nifty has formed a morning star-like pattern on the daily chart and with this, the index has reclaimed its important short-term moving average i.e. 20-DMA. Furthermore, the index has retraced above 61.8 per cent of the entire downmove from its lifetime high to the low of 17,452.90.   

Going forward, the opening of the index and price action thereafter would be important to watch out for. Failure to move above the level of 17,750 would mean that the index might touch the level of Rs 17,580 on the downside while a decisive close above the 17,750 would mean that the index would continue its upward journey and touch the levels of 18,000 in the near term.   

On the RSI, there are a couple of interesting observations. On the daily chart, the RSI stays above the 60-mark while on the 60-minute chart, despite the strong upmove witnessed on Monday, it failed to cross above the 60-mark. Meanwhile, the ADX on the daily chart is at 39; however, the trajectory is downward sloping while the +DI, despite the four-day fall which was witnessed in the last week, did not slip below the 25-mark.