Market details: On Friday, Nifty shaped a bearish candle on his daily map. The benchmark index faces resistance above the 13,000 psychological marks, which has now been the case for the last few sessions. Because of Gurunanak Jayanti, the Indian markets remained shut on Monday.
An indecisive Doji formation on the weekly chart was created by the headline index, indicating a blurred direction of the weekly trend.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said that a Doji formation after a fair upward step could usually be an alert of a potential trend-reversal, which can be verified with weakness in the following weeks.
Aditya Agarwala, Senior Technical Analyst, YES Securities, said, “Sustained trade above 13,000 will continue the upward trend to rise to 13,075-13,130.0 levels.”
On the flip side, however a move below 12,800 could cause profit bookings, dragging the index lower to 12,700 levels. After establishing a negative divergence, the RSI technical indicator also turned down, implying that a temporary pause in the uptrend could be on the cards, he added.
The current market momentum has been driven by concerns about the efficacy of the Covid vaccine and the anticipation of GDP data for Q2.
The market momentum of today was driven by uncertainty about the efficacy of the Covid vaccine and the anticipation of Q2 GDP results. While GDP is expected to improve compared to the previous quarter, the Indian economy’s recovery is likely to be lower compared to its global peers. Recently, the key benchmark showing a change in demand to mid & small caps is outperformed by broader markets,” Vinod said.”