This is our first technical report on 2019. But Before I start, I would like to wish you a very happy New Year to you and your family behalf of team Stock Edge and Elearnmarkets. We thank you for your continued support.
Nifty close 10727.35: Nifty started this week with a gap up opening but ended that session on a negative note. On the following day Nifty again tried to cross its previous day’s high but it was a nominal cross but on the 2nd January, the Index not only opened gap down it also closed on a negative note. And same followed on the next day. But on Friday’s session nifty pulled back from approx 10630 level and closes above 10700 marks.
The main Resistance for the Index is 100 MA line (presently at approx.10886.42) and for support it has 50 MA (presently at approx.10646.45). As we can see in the daily chart of the index from that Resistance level the Index revert back started trading lower. But on the Friday’s session it took support from the 50 MA line and pulled back.
Let’s explore different time frames and find out what could be the possible theme for the Index in coming sessions.
Hourly Technical: In the Hourly chart the index is trading just above the mid Bollinger line (presently at approx.10723.59). Most of the longer term MA lines are above the price and shorter terms are trading below the price level. So there are few important resistance levels and multiple minor supports.
Thanks to the last hour up move it helped the index to close above the 10700 mark and also above the Mid Bollinger line. So there is chance for further upside up to 10800 mark. Because, on that level 34 (presently at approx. 10779.92), 50(presently at approx. 10805.60), 100 (presently at approx. 10811.84), 200 (presently at approx. 10776.64) MA lines are present and they could resist the up move.
In case price drops from this level there will be support from 10700 (Technical price level) and Lower Bollinger Line (presently at approx.10631.89).
Let’s move on to the Technical Indicators, RSI is below 50, Stochastic is at 56.79 (approx), ADX is above 25 and CCI is at neutral zone.
So due to the recent up move in the hourly chart, indicators are pretty much supportive with the trend and if the price goes above this present level there will support from Indicator side.
Daily Technical: As we mentioned earlier price took support from 50MA line (presently at approx. 10646.45) in the hourly chart and due to the pulls back, the index has made a hammer (approx) type formation, which suggest chance of possible reversal.
Just above the recent price level there is presence of all the MAs (except 50 and 5MA (low)). So there will be huge resistance at multiple levels. Specially, at 10850 level. For support we have 50 MA (approx 10646.45) and lower Bollinger line (approx.10530.76).
Let’s look at the indicators, RSI is below 50, Stochastic is just above 40, ADX is trading flat at and it is below 15 and the CCI is at -45 level. (approx.).
Indicators are taking shape, so if there any up move takes place indicators will be fully supportive.
Weekly Technical: It’s a red on the weekly chart. After facing resistance at 10920 level price takes support at 10620 mark. In the weekly chart 13 MA line support the price and helped it to give a close above 10700 mark.
In the weekly chart most of the MAs are below the price or within the price zone. If price crosses this week’s high on the next few trading session it can run up to 11400 mark. In case price falls further, there will be support at multiple level.
Indicators positions are pretty much flat due to flat range of price. RSI is below 50, Stochastic is at 70 (approx), ADX is above 15 and CCI is below -10.
So there is nothing much from the indicator side. If the price crosses recent made low there will be negative crossover in the stochastic indicator. But chance is low because multiple support will be there.
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