NEW DELHI: Equity benchmark Nifty50 traded flat in early trade on Tuesday in follow-up to Monday’s selloff that erased entire gains seen in the last two sessions of the previous week.
While a flareup in the US-China trade war hurt investor mood, technical charts threw up a gloomy outlook.
With the NSE barometer trading below its 20-day SMA and filling Monday’s bullish gap area of between 11,430 and 11,380 levels, further correction in the index looks imminent
That said, many stocks looked strong on the charts, as suggested by moving average convergence divergence, or MACD. The momentum indicator signalled an upward crossover, or bullish signal, on at least 71 counters, hinting at possible upsides in these stocks
Among the stocks that witnessed bullish signals were OMCs IOC, BPCL and HPCL, PowerGrid, Syndicate Bank, Indiabulls Real Estate, Allahabad BankNSE -2.33 % and Tata Power.