Technical Comments

A Make-Or-Break Friday

The Nifty lost 15 points over the day to close at 4593. Another day of unplayable volatility as the index stayed within a 30-point range till after mid-day and thereafter witnessed unwinding towards the end that led to a close near the day’s low. Our mentioned support of 4580 turned out to be the low for the second consecutive day making it even more important today on a closing basis. Technically, the markets remain above moving average, trendline and pattern based supports and hence we continue to believe that the recent decline is a pullback within an uptrend. The daily RSI is at a trendline support while a bullish “Flag” pattern can be seen on the daily chart. There are also a couple of bearish patterns on the hourly chart but we would give the same importance only on a close below the ST trend deciding level of 15300/4580. This entire set-up tells us that something big is about to happen either side for which our bias is positive. A close below the above-mentioned supports would
force us to take a bearish stance. Overall, a make-or-break Friday ahead as the indices trade just above support levels.