Nifty is having a temporary pause around 4700 and it might spend some time here before it goes for the next breakout.After a positive opening, Nifty gave up all the gains and was consolidating around 20 hour moving average (HMA) in the first half of the session. However, in the second half, it started moving upwards and closed with a positive doji pattern. On the daily chart, Nifty is trading in a channel and has taken support at the lower end ie 4620 and has resistance at 4732. Nifty is trading above 20DMA and 40DMA ie 4498 and 4374 respectively, which are crucial levels going forward. The momentum indicator (KST) is trading with a positive crossover and it is above the zero line. The market breadth was positive with 727 advances and 527 declines at the NSE and 1,642 advances and 1,107 declines on the BSE.

On the hourly chart, Nifty is consolidating near 4700 level mark and has support around 20HMA and 40HMA ie 4653 and 4615 respectively. Momentum indicator KST has given a negative crossover but is trading above the zero line.Our short-term bias is up with reversal at 4420 and target at 4850.

The Sensex and Nifty ended marginally higher with 42 points gains in the Sensex and 14 points rise in Nifty. Of the 30 stocks of the Sensex, ONGC (up 4%) and Wipro (up 4%) were the top gainers, while Maruti Suzuki India (down 3.5) and Hindalco Industries (down 2.5%) were the stocks down in the red. Buying activity was witnessed in stocks from information technology sector and stocks from Auto sector were in the red.

(Disclaimer : The above chart shown is for study purpose only and not for trading decision)

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