Hourly Chart

Market Ends On A Negative Note But Manage To Hold The 11250 Mark

by Mitali Dutta on Market Analysis, Market Wrap

This week market continues its downtrend and sheds approx. 110 points. But fortunately the market has managed to close above the 11250 mark and this is important support. Apart from this tiny pullback from 11250 level, we have also witnessed positive hidden divergence in the RSI indicator. However, the divergence is not yet confirmed. 

Now, the overall situation is that the stock market is in an uptrend in a larger time frame (monthly) and we are having a mean reversion. Unfortunately, in the monthly chart, there is a negative divergence in the RSI indicator and it is confirmed. So we can expect for now that, on the shorter time frame there could be a pullback (Upside) due the hidden positive divergence that has formed in the RSI (Weekly chart) but the sentiment likely to stay negative because of the negative divergence in the RSI indicator on the monthly chart.

Hourly Technical: On the hourly chart, the market is consolidating around 11250-11300 level. We have witnessed a positive divergence in the RSI indicator so there could be a short term pullback towards 100MA (11472.46 levels). 

Three important MA lines are trading above the price in the hourly chart, so there would be multiple resistances in case the pullback happens. 

On the Indicators side, RSI is trading above 45, Stochastic above 60, ADX is falling and it is below 20 and the CCI is above 0 mark. 

If there is any pullback happens 11400 level likely to act as resistance but in case the price again breaches below the 11210 mark, 11150 would be short term support.

Hourly Chart
(Hourly Chart)

Daily Technical: We have a similar situation as the Hourly chart has. An intermediate positive hidden divergence (not so strong) has been witnessed in the daily chart. 
The market is trading above 200 MA in the Daily chart and it is trading at its support of 11250 mark and we have a small divergence. 

On the technical side, RSI is above 30, Stochastic is below 20, ADX is above 25 and the CCI is below -120 mark. 

So overall there could be a pullback but the negative sentiment is not going to change within just a pullback. The resistance would be at 11550 mark if the pullback happens and the support would be around 11150 mark.

Daily Chart
(Daily Chart)

Weekly Technical: The weekly also holds the same sentiment just like the Hourly and Daily. A pullback is expected towards Mid Bollinger line (trading at approx. 11638). But until the price is closing above Mid Bollinger, we cannot be sure about the trend change. 

Technical parameters, RSI is below 50, Stochastic is also below 20, ADX is below 15 and the CCI is below -130 level. 

On the upside, 11750 level would be the resistance for any upside move, but if price closes below the 11100 mark, 11850 would be potential support.

Weekly Chart
(Weekly Chart)

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Technical Chart
(Technical Chart


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