Tuesday's session is likely to see a somber start to the day. The levels of 13,000 and 13,090 will act as resistance points, while support will come in at 13,880 and 13,800 levels.
The RSI stands at 67.46; it stands neutral and does not show any divergence against price. However, following the occurrence of bearish failure swings, it appears to be making lower tops which is not a good sign. The daily MACD is bullish and stays above the Signal Line. However, going by the sharply narrowing slope of the histogram, it is set to see a negative crossover going ahead. No major formations were observed on the candles.
Nifty came off in the second half of the session. However, in the process, it has added 5.10 per cent or over 5.80 lakh shares in Futures Open Interest. Although the change in Nifty levels on the closing basis is not much, however, the quantum of reduction of OI indicates that there may have been some last hour selling in the previous session.
Regardless of the global setup that we inherit on Tuesday morning and some incremental up moves that we may see, the domestic technical setup has now become extremely risky. Chasing momentum would just not be a good idea. We reiterate strongly to keep focus on traditionally defensive stocks and keep protecting profits vigilantly at current levels.
Source:Et