Hourly Chart

Daily Chart Has Positive Sign While Weekly Showing Negative

by Elearnmarkets on Market Analysis, Market Wrap
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Nifty close 10693.70: After making a Doji candle in the daily chart, Nifty pulls back from the 10930 mark (approx…) and it is a move of 330 points (approx.). But on the Friday the index ends with a positive candle and if we consider the last two candles in the daily chart, it is a Bullish Harami formation from the index. As we know this pattern suggest – Bulls are going take the market higher. Surprisingly, in the weekly chart Nifty has formed Dark cloud cover formation which is just opposite of the Bulls.

So at this moment, the most common question is what will be the market direction for the next sessions?

Market is in a phase of consolidation as the chart suggest. Market is trading within a range of 300 to 350 points from last three weeks. 10900 mark is the resistance and 10500 is its support. But the range is shifting very slowly and fortunately it is up.

From the indicator side another thing we can notice that every time RSI come near its 45 mark, it is taking support from that level and helping the price to go up.

Let’s explore the detail analysis very quickly.

 

Hourly Technical: As per the hourly chart it is kind of a double bottom formation, so the recent pull back was expected. But by seeing the MA lines and the position of the Bollinger Band we can expect that the price is going to consolidate further, in case any sudden move happens, high chance is that the move will be mitigated.

Let’s discuss the indicator, RSI is just below 50, Stochastic is overbought level (presently at approx. 91), ADX is at 32 and slopping down and CCI is at 25 mark (approx.)

So it is a pretty flat reaction from the indicator side. As we mentioned earlier high chance is price is going to consolidate. If any move happens in upside 10800 mark will act as resistance and for support 10600 mark will act.

Hourly Chart

(Hourly Chart)

 

Daily Technical: As previously mentioned, it is a Bullish Harami formation in the daily chart. So chance is price may go higher. But as the chart suggest because of the bunch of MA lines are present at that level (10750 to 10800), the up move will not be so easy.

Price has just crossed above the Mid Bollinger line in today’s session which is a positive sign it self but we have to consider that sentiment is on the bearish side.

Let’s look at the indicators, RSI is just above 50, Stochastic is at 45 mark (approx.), ADX is below 15 and CCI is at -11(approx.).

So most of the indicators are flat at this moment but if the index cross 10722 mark some bullishness may be witnessed but we would be surely doubtful about that move.

Daily Chart

(Daily Chart)

 

Weekly Technical: Weekly chart has made a dark cloud cover pattern and as we all know it brings negative sentiment in the market. Confirmation of this pattern will take place when the market will breach 10590 mark (approx.).

The Mid Bollinger line acted as a resistance for the Index and it is presently at 10949 mark or 10950 mark, which is a strong resistance zone for the index. And if the market goes below 10200 mark will be the immediate support after the 10500 mark.

Let’s focus on the indicator, RSI is just below 50, Stochastic is below 40, ADX is also below 20 and the CCI is -31 (approx.)

Indicators are flat in all time frame that is why consolidation is much expected rather any certain up or down move.

Weekly Chart

(Weekly Chart)

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Technical Chart

(Technical Chart)

 


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