Hourly Chart

Market Ends on a Negative Note. Closes Approx. 220-Point Lower from Its Previous Weekly Close

by Mitali Dutta on Market Analysis, Market Wrap

Nifty close10724.40: Market ends 200 point lower this week. After making the Shooting star formation, this latest fall was pretty much expected from the index. 10620 level was touched by the index on Friday session. 10650 was the important support level for the Index and after retracing from that level Nifty make the close above 10700.

Because of the recent fall, Nifty is currently trading below most of the MA lines except the 100 MA. If the on the next trading session the index breaches this week low (approx. 10620.85), then a fall may be witnessed. Unless Nifty likely to hold this level further.

Let’s inspect it on micro timeframes,

Hourly Technical: In the Hourly chart we can see price reversed back after making a Doji pattern. In case price crosses the 10800 mark on the next trading session it can go upto 10900 and above that 11050 would be the possible resistance level. But in case price slides down 10500 and after that 10350 would be the possible support.

On the technical side, RSI is above 40, Stochastic is above 60, ADX is below 40 and the CCI is below 0.

So it’s a pull back from a support level. Until the previous swings are not breaks or breached we will not be certain about any direction.

Hourly Chart

(Hourly Chart)

Daily Technical: In the Daily chart the index has made a red candle with a long spike, however this candle should not consider as hammer because of structured. But the shadow of the candle definitely suggests something.

The long shadow suggests two possible scenarios. 1. Short positions have been squired off and 2. New long positions have been added.

However, Nifty took support from that 10650 level it is confirmed and this level is going to be the most important for the next trading hours.

On the technical side, RSI is trading above 40, Stochastic is above 20 mark, ADX is below 145 and the CCI indicator is trading below -100.

So overall, the recent pullback may extend a bit but this does not affirm any trend reversal.

If the index begins to trade higher, 11050 would be its possible resistance level. And if the index slides below the 10600, it may touch the 10350 support level.

Daily Chart

(Daily Chart)

Weekly Technical: In the weekly chart it is mother of all consolidation. This week’s red candle may bring a smile on the Bear’s face but the move will not confirm until the 10600 mark is not breached. On the upside there is plenty room for the index to stay in the consolidation zone. Any directional move above 11120 will affirm the breakout.

Let’s have a look on the technical side, RSI is below 50, Stochastic is also below 50, ADX is below 15 and the CCI is coming from the 100 mark (Presently trading at 40 level approx.)

Overall, the index is trading in a range bound zone. Weekly closing above the 11100 or below 10600 will only bring the directional move in the index.

Weekly Chart

(Weekly Chart)

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Technical Chart

(Technical Chart)


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