Moneycontrol
Dec 07, 2017 08:59 AM IST | Source: Moneycontrol.com

Markets@Moneycontrol: technicals may drive the near-term trend on D-Street

The index thus may move on course to further correct to lower supports at 9950 on short-term scale and 9750 on the medium term scale.

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Bears remained in full control of D-Street on Wednesday and the last hour was the most damaging. The index slipped below 100-DMA but took support at its 100-DEMA placed around 10038.

 

Albeit a dead cat, bounce may not be ruled out, as the daily & hourly RSI are trading around 30 mark, indicating an oversold position. 

 

The earlier supports have now turned into a resistance at 10,230-10,250. Till the index closes above this levels, one should stay with bears.


Rate sensitive stocks could remain in focus for second day in row after RBI kept rates on hold and adopted a cautious stance. Rise in inflation could well put an end to rate cut cycle, fear experts. Indian economy is not out of woods and a are cut could be helpful in boosting growth.

The Nifty formed a bearish candle on the daily charts. Formation of a bearish candle after a Doji pattern clearly gives an advantage to the bears but a small technical bounce back could be on cards. Both MACD as well as Supertrend indicators are in ‘sell’ mode and if Nifty breaks below 10,030 then decline towards 9850 is possible.

For more, watch the Markets@Moneycontrol show. Moneycontrol Editor Santosh Nair talks to Shishir Asthana on the markets trends to watch out for today.
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