Indian shares recovered from the day's low to provisionally end flat on Monday led by a rally in public sector banks on hopes that legislation on banking sector reforms would be passed during the current session of parliament. The consequent changes would lead to the issue of new banking licenses.
The Nifty closed at 5,908.90, up 1.50 points or 0.03 per cent. It touched an intraday high of 5,919.95 and a low of 5,888.10. The BSE Midcap Index ended 0.64 per cent up and the BSE Smallcap Index moved 0.34 per cent higher.
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MCX Gold price is consolidating in a broad range of Rs.30,750 - 32,850 (R-S). Price has been falling consistently from Rs.32,830 towards Rs.30,915 and pullback rally of this entire down move looks possible now. From a long term basis, Rs.31,800 (shown by dotted line) should act as a crucial level.
The 14-period RSI has dipped sharply below the support line and is in the oversold region. As long as trend line support at Rs.30,900 (previous low) is held on the downside, buying on dips is advisable. Going long on (cmp 31,290) dips towards Rs.31,180-31,200 and target Rs.31,480/31,750 and stop loss (closing below) Rs.30,900 level is advisable.