Indian equity benchmark continues to fall for the fourth back-to-back session on Monday, dragged by heavyweight such as Infosys and HDFC banks. The two companies reported their financial results for the January-March period during a long weekend.
Mindtree shares fell track losses in the overall IT basket, ahead of a series of strong income by the company. (See key factors to track this week)
The question is: Can the Mindtree results bring cheerfully to the market on Tuesday?
NIFTY50 has formed a small negative candle on a daily chart with a lower long shadow after the opening of the gap-down, suggests a bullish type hammer pattern, according to Nagaraj Shetti, technical research analyst at HDFC Securities.
“This candle pattern brings hope that comeback oules from the lowest position. A sustainable upmove above 17,240 can confirm the reversal pattern,” he said.
Bulls vs Bears for now
Technically, the 50-script candlestick doji pattern shows doubts between bulls and bears, said Shrikant Chouhan, Head of Research in Equity (Retail) in the Securities box.
“The bigger texture is still on the bearish side and fresh pullback rally only maybe after 17,200, on it, the pullback rally is likely to continue until 17,300-17,375 levels. On the other hand, traders can expect support immediately at 200 – a simple average move , Below, the index can retest the level of 17,000-16,900, “he said.
Here are the main things that need to be known about the market before the April 19 session:
SGX Nifty.
At 7:42 a.m. on Tuesday, Singapore exchange (SGX) Nifty Futures – the initial indicator of the Nifty index – up 41.5 points or 0.2 percent at 17,267.5, indicating a higher opening forward.
Global market
Equity in the other Asian market is a mixed bag at the early hours after the sluggish session on Wall Street last night. The most extensive MSCI Asia Pacific stock index outside Japan fell 0.6 percent in the final calculation.
Nikkei 225 Japan rose 0.2 percent, South Korea Kospi 0.9 percent and the Singapore strait of 0.7 percent. On the other hand, Hong Seng Hong Kong fell 2.7 percent and Shanghai Composite China flatly.
S & P 500 futures rose 0.2 percent.
On Monday, the three major US indices ended the choppy session of up to 0.1 percent lower because investors compare the positive opinion of Bank of America with bond yields.
What is expected in Dalal Street
Shetti HDFC Securities continues to hold a good view in short-term negative trends.
“The overall chart pattern shows the possibility of bouncing from the current level or from near 17,000. Confirm the reversal pattern and the bounce power rises will likely open a relief rally for the market,” he said.