Hourly Chart

Nifty Ends on Positive Note, Gains Approx. 475 Points on Positive Global Factors

by Elearnmarkets on Market Analysis, Market Wrap
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Nifty close 10553.00: After 8 weeks consecutive falls this week, Nifty ends in the positive note and closes above its previous candle’s high (weekly chart). The reason behind this sharp pull back is because of the positive global factors like correction in rupee price and fall in Crude price etc. Apart from this macro fundamental factors technically Nifty took support from its 100Ma line in the weekly chart.

It is expected that the index would face resistance at 10750 in case if it trades higher from this level and in case of any downfall 10350 level will act as a support.

Hourly Technical: In the hourly chart after this downfall this is the first time the Index is trading above the 200MA line and other MA lines are also below the current market price.
Previous swing high for the index in the hourly chart was 10707.90 (approx.) so this level Nifty would likely face resistance and 10350 is going to be the support for the Index.

Let’s discuss technical, because of this recent upside pullback from the index most of the indicators are in the overbought level. RSI is above 70, Stochastic is also just above 80, ADX is at 40 (approx.) and the CCI is above 80.

Overall sentiment is pretty much strong in the hourly chart. Because of the overbought condition there may be a little downside for the next trading session but overall Nifty likely to follow this recently formed uptrend.

Hourly Chart

(Hourly chart)

Daily Technical: This week the Index gains approx. 475 points and we can see it is a double bottom formation in the daily chart with positive divergence in the RSI indicator. Technically this could be the another reason for the index to move up sharply apart from the support of 100MA line in the weekly chart.

Let’s talk about the technical indicators. RSI is above 50, Stochastic is just below 80, ADX is slopping down and it is just above 30 and the indicator CCI is above 120.
Indicators taking shape slowly. ADX is suggesting a little consolidation may take place because the pace may come down. RSI is suggesting that the momentum is building up.

Overall there is no clear sign of trend reversal, it will confirm when index will cross 10750 and give a close above it.

Daily Chart

(Daily chart)
Weekly Technical: in the weekly chart the index has took support from the 100 MA line, and this is the first time the index has closed above the previous candle’s high after this downfall. So as we can see it is a solid support at the 100MA line (presently at approx. 10050.74) and for resistance 50 MA line (presently at approx. 10708.68) may act as a short term resistance for the index. Above this level, 11000 level would be the another important resistance level for the index.

Let’s focus on the indicator side, RSI is above 45, Stochastic is just above 30, ADX is flat (presently at approx. 23.06) and CCI is just below -100.
So in the larger time frame it nothing but a green candle but we should not ignore the candle size. Because of this candle, indicators are getting back to the normal zone from their oversold level and this may be the early sign of the trend reversal.
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Weekly Chart

(Weekly chart)

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Technical Chart

(Technical Chart)

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