Bajaj Finance, Bajaj Finserv top gainers today while ICICI Bank and Axis Bank are top losers

Indian benchmark equity indices recovered from early weakness and ended flat in a volatile session today. In the process it ended at almost the intraday high. At close, the Nifty was up 9.70 points or 0.07% at 13,567.90. Volumes on the NSE were in line with recent averages. Among sectors, all of them ended in the negative except Media, Auto & Metal indices. PSU Banks and FMCG indices fell the most. About 1389 shares have advanced, 1333 shares declined, and 128 shares are unchanged.
 
Nestle, HUL, BPCL, Axis Bank and ICICI Bank were among major losers on the Nifty, while gainers were Bajaj Finance, Bajaj Finserv, Eicher Motors, Shree Cements and JSW Steel. Except auto and metal, other sectoral indices ended in the red with Nifty PSU and FMCG indices fell 1 percent each.
 
Asian shares retreated on Tuesday as investors waited to see if Congress could break a logjam on delivering more aid to people, businesses and local governments affected by the coronavirus pandemic. European stocks edged higher early on Tuesday, as investors were hopeful of a Brexit trade deal but fearful of rising COVID-19 cases and tighter restrictions.
 
Nifty has formed a pattern on daily charts similar to that on Monday with 13590-13598 being a crucial resistance. As it has closed only 30 points away from this band it has a good chance to make a new high in the coming few days. High intraday volatility and flat close means that markets are due for a sharp move shortly in either direction.
 
Nifty continued to show choppy trend for the fourth consecutive session today and closed the day with a minor positive note. Nifty opened on a negative note, slipped into further intraday weakness after the opening. It later showed a fine intraday upside recovery from the day's low of 13447 in the mid part and erased the entire day's loss towards the end and closed the day in minor green. The overall market breadth was neutral and broad market indices like midcap 100 and small cap 100 of NSE have closed with minor gains of 0.47% and 0.19% respectively.
 
A small positive candle was formed on the daily chart with a long lower shadow. This pattern could be considered as a formation of another doji pattern, which is fourth in a row in the last four sessions. In all the four sessions, we observe a formation of long lower shadow, which signals the emergence of buying interest after intraday weakness. This is a positive indication and signal chances of further upmove in the short term.
 
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Nifty continues to hold on an immediate support of 10 day EMA in the last 18-20 sessions and this immediate support has led to an upmove from the lows (intraday dips). Still there is no indication of any reversal pattern unfolding at the highs.
 
Conclusion: The short term trend of Nifty continues to be range bound within a high low band of 13600-13400 levels. A sustainable move above 13600 levels is expected to result in Nifty continuing with next round of sharp upside momentum and inch towards the next upside levels of 13900 in the near term. Any display of lack of strength around 13600 could mean minor profit booking from the highs. Immediate support is now placed at 13450.