NIFTY - Metal in the move?

26 Jul 2022

Nifty, the final supply did materialise. What is interesting is the move is led by metal index. All most all other indexes are on the mend. The Pharma restart the down move (this one was first to move down in the bear cycle), IT continues to dither. AUTO and FMCG huge profit taking and near term softer tone. Fight in the Finance space. The weakest one stood tall yesterday. Ichimoku cloud also acted perfect supply side. If recession is the worry everything should fly and metals to fall. If there is no recession then metals to be supported. But that scenario brings elevated rate cycle. Today, we are in a situation, two central banks follow different path, to top banks differ on the pace of the recession, economist start apologizing, high priests in the power continue in disbelief. Results come and go, reaction remains muted. The first causality, is always the liquidity/volume. In the chart, we had gap down, large bear candle (mind you this is two hour graph). Break below 16550 confirms move towards 16300. Remain shorts with stops 16730 for 16300. Supports 16610-16560-16540-16480, supply 166680-16712-16755.