Hourly Chart

Market Ends In Green, Recovered Almost 325 Point From Its Weekly Low

by Mitali Dutta on Market Analysis, Market Wrap

Nifty close 10859.90: Nifty started this week with a Bearish candle and this trend continued till Wednesday 10.30 am. After reaching the low of 10534 level Nifty start its up move and ends the week in Green.

This type of recovery is one of a kind but this does not assure that the momentum is going to continue and Nifty eventually trade higher. Just above the Friday’s closing price (10859 approx.) there is the presence of 100 MA line (presently at approx. 10913.73 level) in the daily chart. So this is going to be the first level of resistance Nifty is going to face. Another noticeable factor is, in the weekly chart Nifty is trading below the Mid Bollinger line (presently at approx. 10867.28 mark.) and we have witnessed that Nifty respected this level on Friday’s trading session.

So as per the recent situation we are expecting that the index likely to hold this level until the it is closed above 10950 mark. There is another chance of pull back also if the index slides below 10764 mark but in that case 10700 level will provide support to the index.

Let’s dive into the micro picture.

Hourly Technical: As we can see in the hourly chart, the index is trading in between MA lines. Thanks to that up move, because of that most of the longer term MA lines are below the price (like 50, 100, 200 MAs). So there will be multiple support if the index slides from this level.

Another important factor we can observe is that Bollinger Band squeezing, which suggest volatility is going to drop. So next trading hours likely to stay flat unless there is any news or major price movement influence the technical.

In the indicator side, RSI is at 60 mark, Stochastic is at 73 level (approx.), ADX is above 20 mark and CCI is below 70.

So overall most of the indicators are flat at this moment. But despite being flat, RSI and Stochastic position is strong. So In case up move takes place 10940 mark will be the resistance and if the index slides 10750 mark will be its support.

Hourly Chart

(Hourly Chart)

Daily Technical: It’s a corrective phase in the daily chart and just like the hourly chart, here also the Index is trading in between the MA lines.

Important factor in this case is just above the price line there is the presence of 100 MA line (presently at approx. 10913.73 level) which will be the latest resistance for the index, as we mentioned earlier. Above this mark there will 11000 level which is a psychological as well as a Technical level, which will be the another Resistance for the index.

In case of support, there are multiple support level at this moment. 10500, 10700, 200 MA line and Mid Bollinger line will be the important support in case Nifty falls from this level.

Let’s focus on the indicator side, RSI is at 55 mark, Stochastic is at 80 mark, ADX is below 15 and the CCI is above 50 mark.

So there is no divergence between the price and the Indicator. We can expect that the further up move is still possible. But Resistances are there so traders have to be careful about that.

Daily Chart

(Daily Chart)

Weekly Technical: Nifty closed below the Mid Bollinger line in the weekly (presently at approx. 10867.28) chart. The Mid Bollinger line has been the resistance for the index as we can see. But positive thing is important MA lines are below the price, so there is support.

If the index manages to close above the Mid Bollinger line and close above 11000 mark, then it can trade higher up to 10410 level (resistance).

Let’ look at the indicator side. RSI is above 50, Stochastic is also above 70, ADX is below 20 and the CCI is at -20 level.

So there is nothing significant from the indicator side but if the index trade higher indicators will be with the Bull’s.

Weekly Chart

(Weekly Chart)

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Technical Chart

(Technical Chart)


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