Despite positive global cues, Nifty ended a dull session on a flat note on Monday as investors looked cautious ahead of winter session of parliament that would begin on Thursday. The index ended at 5,571.40 down 2.65 points. For second consecutive session on Monday, declines outnumbered advances by a 2 to 1 ratio.
Commenting on outlook, Dharmesh Patel, technical analyst, Emkay Global Financial Services, "It's the seventh consecutive session when the index has ended in red. If we look into past and examine the history after seven days of negative closing probability of a positive close is high. Also the daily momentum has almost touched its oversold reading, which also says that the ongoing streak of negative closes is on the verge of termination. But still we are in doubt whether the bounce from current levels will only be a dead cat bounce or start of a new up-move. Unless index goes above its 50-day MA (5,630) and violates the bearish island at 5,699, bears' will have an upper hand and our inclination will be towards a bearish viewpoint. Then why aren't we utterly bearish! The reason is that Nifty has not yet broken its bullish trend line (5,549) that is drawn connecting the lows of 4,770 and 5,217. And until that is broken probability of a whipsaw break of 50-day MA will remain open.
So, frankly speaking as of now we are in the midst of confusion as to who will lead - bulls or bears!"
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