Nifty yet to confirm a breakout; protect your profit

Nifty yet to confirm a breakout; protect your profit

The NSE Nifty failed to give a decisive breakout once again on Tuesday and remained in the 12,000-12,040 resistance zone. The index finally ended with a loss of 66.90 points or 0.55 per cent 

Dalal Street, which will open on Thursday after a day’s gap, will take cues from global markets trading on a strong note. 

The stock market is likely to make a stable start to the trade on Thursday, but may not see a runaway rally. The strength in the US market was seen following a couple of sharp declines and the latest upmove may be just a technical pullback. 

Indian market is yet to confirm the attempted breakout and still hovers in the important resistance zone of 12,000-12,040. These levels will continue to remain the key. 

Also, we have the Reserve Bank of India’s money policy review on Thursday. A rate cut of 25 basis points has already been discounted in the market. 

The daily RSI stood at the 63.01 level, and it remained neutral, showing no divergence against the price. 

This candle has a long upper shadow and a small ready body along with a small or a nonexistent lower shadow. The current formation of the candle signals stalling of the current upmove. 

As we step into Thursday’s session, we may have more technical headwinds. Any unabated rally is set to get extremely risky at higher levels. 

The current technical setup is highly risky for fresh purchases and this makes risk-reward ratio highly unfavourable. We strongly recommend traders not to c ..