Nifty saw a rough week but a cheerful closing.
Nifty was up by 96 points today, closing with a test of the 7500 level. On the daily chart, the 7600 level is posing as the immediate resistance, whereas this channel suggests that 7800 is also a barrier on the upside. Turning to the weekly chart, the Doji which was spotted few weeks back has indeed lead to a reversal as the index has maintained itself above the Doji’s low.
The steel sector was in good cheer today, especially Tatasteel. It was trading 6% down today morning but has closed 3.5% higher from yesterday’s close, showing a 10% recovery from the lows. The Bank nifty was also pretty strong, it closed 2.30% higher.
The Nifty Midcap Index is currently at its support trendline from where it has bounced upward several times in the past.
The next entire week will be Chinese market holiday, so we can expect some recess time for the index. Today, the international indices were cheerful overall.
CHART OF THE DAY
On cue of the Q3 result , Lupin has gained the top position today. The management’s comments were very bullish, bringing cheer to the stock price which closed 10 % higher. Other than that we had convincing signals on the chart ahead of today. One was the positive divergence on RSI, which indicated a change in momentum and the other was that lupin was looming very close to the important support level of 1600, from where it turned higher after touching an intraday low.