Hourly Chart

Market Ends on a Negative Note Ahead of Year’s First Expiry Week

by Mitali Dutta on Market Analysis, Market Wrap
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Nifty close 10780.55: This week market started with a positive momentum, but as it crosses the 10950 mark the selloff started. However, the day remains positive but selling continues from the very next day which drags the market up to 10757 mark (approx.).

Next week we will have our first expiry of 2019. Market is expected to remain volatile until end of the expiry.

For now, Market likely to trade in a range bound zone until the 11000 mark is crossed. In case market slides down, there will be multiple support levels which may slow down the fall.

Hourly Technical: In the smaller time frame it’s a break of a trend line in the Hourly chart. Also, there is a gap between 14th and 15th Jan’s trading session. So there is high chance that the index will try to close the gap. As a result, market will end up sliding down.

On the indicator side, RSI is below 40 and sliding down, Stochastic is trading at its oversold level (approx. 13 mark), ADX is above 20 and the CCI is about to cross -140 mark.

Overall the sentiment is on the negative side and further correction may take place.

At this moment, 10600 mark will be the important Support if the index breaches the 10700 mark but in case it goes up 10950 mark will be the Resistance.

Hourly Chart

(Hourly Chart)

Daily Technical: As we mentioned earlier while discussing the Hourly chart, same goes with the Daily chart. There is a break of trend line and the market has given a close below that trend line.

On the technical side, RSI is below 50, Stochastic is below 30, ADX is below 10 and the CCI is -13 (approx) level.

Most amazingly, there is 50 MA and 100 MA positive crossover may take place on the next trading day, despite the breach of the trend line. Alongside this, indicators are also showing bearish sentiment. So we can draw that the market is in a phase of uncertainty.

But if the market slides below this level 10600 mark will be the support and in case it goes higher side, 10980 mark will be the resistance.

Daily Chart

(Daily Chart)

Weekly Technical: In the Weekly chart, it is nothing but a huge consolidation. Market is trading between 10600 to 10950 level. But the range is squeezing and it is also confirmed by the Bollinger Band.

Market is expected to remain volatile and range bound until it closes above 11000 mark or close below 10600. This will open some room for the market to take a certain direction.

Until the market trades in between the MA lines volatility will remain high.

Positive thing is that market is above the important MA lines (100MA and 200 MA) and 50 MA is presently supporting the index.

Let’s focus on the indicator side, RSI is below 50, Stochastic is at 79 mark (approx.), ADX is below 15 and the CCI is above 40.

So there is nothing much from the indicator side. Momentum and the strength are slopping down, CCI is trading at a neutral level and the Stochastic has gone overbought and it is also slopping down.

So a chance of retracement is there on Mid Bollinger line but until the market breaks out from this cluster (consolidation) no movement will be certain.

Weekly Chart

(Weekly Chart)

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Technical Chart

(Technical Chart)

 

 


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