Nifty close 10906.95: This week Nifty closes above 10900 mark but it ends on a negative note. Consecutive two hanging man formation has been made by the index in the last two trading days. Because of consolidation trading range from the index, these two candles might not work as per the expectation. However, they do suggest reversal of a prevailing trend.
Positive thing about the latest closing is all MA lines are below the price and Nifty has made a close above 10900 mark. But, 10930 to 10950 is going to be the most important Resistance levels for the index on the coming session.
Let’s explore the small time-frame.
Hourly Technical: In the hourly chart the index is consolidating after a short uptrend. MA lines are above the price so we can say for now sentiment is on the Bullish side. But as we mentioned earlier, Nifty is on the verge of make or break. So until the index cross 10950 mark and close above it, we cannot be certain about the up move.
On the other hand, if the index closes below 10650 then there would be high chance for the index to slide down further.
As per the recent scenario, 10930 is going to be the resistance for the index and for support we have 10850 mark.
Let’s look at the indicators, RSI is trading below 60, Stochastic is above 60, ADX is below 20 and the CCI is on its neutral zone (approx. 65 mark)
So as per the indicator, Momentum and the strength both are slowing down and because of this the consolidation may take further trading hours to settle (make or break).
Daily Technical: As we mentioned, the Daily chart is on the Bullish side but the Resistance is going to be the key player for the upcoming session. Latest close is above the MAs and Weekly close is much greater than the previous week close.
The chart suggest, price range is squeezing and we may witness a breakout (or down) this week. In case price goes up 11000 mark is going to be the resistance for the index and in case price slides down, 10750 mark might act.
On the indicator side, RSI is below 60, Stochastic is above 90, ADX is at 12 (approx..) and the CCI indicator is above 100 mark.
Momentum and the Strength are dry according to the chart but the price is trading at overbought level. So we can expect a little pullback might take place on the next trading session.
Weekly Technical: The weekly chart suggest the sentiment is bullish and the price has able to cross all the MA lines. Presently, the price is trading at the ceiling level of the consolidation zone and it has gone overbought.
In case price cross this week’s high in the next trading session then there would be higher chance for the price to climb up further. In that case 11000 mark is going to be the resistance level for the index. But if correction happens it can slide up to 10650 mark (5 EMA – low).
Let’s have a look at the indicator side, RSI is above 50, Stochastic is above 90, ADX is below 20 and the CCI is above 20.
Overall the situation is same. Strength and momentum is not present but there is room for up move.
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