Hourly chart

Nifty Manage To Close With A Positive Note. Bulls May Get Their Confidence Back Very Soon

by Elearnmarkets on Market Analysis, Market Wrap
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Nifty close 10682.80: This week Nifty start with a red candle but ultimately after trading in a range bound zone for three days manage to close above that level with a green candle. FIIs cash inflow and strengthening in rupee helped the market to sustain above 10650 mark.

Shor term MA lines are just below the price level. They are supporting the index to in shortfall but important MA lines like 50, 100, 200 are just above the price. So this congestion is because of short term and long term MAs are getting closer.

Hourly Technical: It is a consolidation in the Hourly chart. After the short term uptrend,the index is facing resistance near the 10700 mark. Once this level is broken and the index closes above the10750 mark Bulls confidence likely to come back.

In the indicator segment RSI is above 60, Stochastic is near its 90 level, ADX is just above its 20 mark and the CCI is above 106.

So overall the indicators are showcasing strength as well as momentum. If there is gap up opening takes place on the next trading session, high chance is the index will break the 10750 mark easily.

Hourly chart

(Hourly chart)

Daily Technical: In the daily chart of Nifty, it is standing at a strong resistance level (10750 mark) and there is a presence of 200MA (presently at approx.. 10754.27) line as well. So because of these two reason this level is a psychological and also a technical resistance level. Fun factor is most of the short term MA lines are below the price so there is multiple support level for the index in case of any fall.

Let’s discuss the indicators, RSI is above 55, Stochastic is at its 98 level (approx..), ADX is just below 19 and CCI is above 100.

So momentum is in the support but others are in overbought level and the ADX is trading flat. So the sentiment is pretty much strong in the market but because of the strong resistance, market is taking time at this level. Once the level is broken the 10950 mark is going to act as a strong resistance and if the index again go back to its previous downtrend 10350 mark will provide strong support.

Daily chart

(Daily chart)

Weekly Technical: It is consecutive three positive candle from the Nifty in the weekly chart. However, middle one being the Doji. As we know Doji means indecision so market is in a phase where it is finding its direction and by seeing the chart we are expecting market likely to go up if it manages to give a close above 10700 mark.

Let’s focus on the indicator side RSI is just below the 50 mark, Stochastic is just below the 40 level, ADX is above 20 but slopping down and the CCI is just below -60.

So the reaction is pretty much flat from the Indicator side. However, if the index goes up 10950 mark will be its resistance (Middle Bollinger line) and for support we can expect 10350 mark will react.

Weekly chart

(Weekly chart)

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Technical chart

(Technical chart)


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