FTSE 100 (6338)
Yesterday saw crackdown in price action after opening on a flat note. Index closed lower by 80 points. The index is witnessing short-term correction after making a high at 6680. The market has further breached the support posed by 200 days moving average at 6413.The daily momentum studies also shows mixed outlook as while the RSI (14) and M.A.C.D indicator slips below mid range the STOCHASTIC indicator is close to giving a buy signal at oversold territory.
Technical parameters have started showing cool off. With a rise above 8530, DAX is still trading at all time high level on closing basis, but daily MACD has generated a sell signal. Stochastic oscillator is falling, showing loss of momentum.
Technical parameters are throwing caution signal. MACD has generated sell signal after obtaining negative divergence along with RSI and stochastic oscillator.
Nifty opened with huge upside gap yesterday and made a high of 5981. However, profit booking during second half dragged it down to 5913 and finally it settled at 5928 with a net gain of 22 points. Bulls have managed to hold above the level of 5800. It was quite a volatile week with a downside penetration to 5700 and than bounce back to 5950. Market is witnessing unprecedented move. Extreme volatility has made it almost impossible to predict future price moves. Nifty is trading above the combined support of neckline of H&S pattern and 200 DMA. However, sell signal in daily MACD remains intact.