Nifty breaks out slightly from 4 Day Trading Range, just 100 points away from new high

by Elearnmarkets on Market Analysis, Market Wrap

Nifty (Close 10389.7): After several days, Nifty opened and closed above 5 Day High EMA. The index closed with a mild gain today and slightly broke out from the previous 4 day trading range. The overall sentiment of today’s session remained bullish.

Hourly Technicals: In the hourly chart, Nifty opened with a gap up of 20 points. The index experienced heavy buying pressure in today’s session, taking support at the 5 Day High EMA level for most part of the day. The probable support levels for Monday’s session comes at the 100 Hourly Moving Average (presently at approx. 10284.4) and at the 200 Hourly Moving Average (presently at approx. 10310.3).

On the upside, Nifty may experience resistance at the Upper Bollinger Line (presently at approx. 10367.2).

The daily CCI has slightly retraced back to the upper bound level of its normal range but continues to be mildly bullish. The Slow Stochastic is in the overbought zone. RSI continues to be in its normal range but close to its upper bound level. ADX is still flat, indicative of lack in upside momentum.

Figure: Nifty Hourly Chart

Daily Technicals: In the daily chart, Nifty experienced buying pressures throughout today’s session and closed with a mild gain of 20 points. The index has been on a gradual uptrend since the past few days and not much volatility has been experienced. This trend is expected to continue.

The probable support levels in the daily chart are the 5 Day Moving Average (presently at approx. 10341.3), the 5 Day Low EMA (presently at approx. 10310.2), the 20 Day Moving Average (presently at approx. 10324.3) and the 34 Day Moving Average (presently at approx. 10262.3).

On the upside, Nifty may face resistance at the Upper Bollinger Line (presently at approx. 10497.5).
The daily CCI, RSI and Slow Stochastic are all well within their normal range, above their mid-point levels indicating mildly bullish sentiment. ADX continues to be flat showing lack of momentum.

Figure: Nifty Daily Chart

Weekly Technicals: Nifty showed moderate bullish sentiments in this week’s chart. Similar to last week’s movement, Nifty moved by almost 250 points between 10404.5 and 10261.5. However, in contrast to last week, the index breached the 5 Day High EMA level justifying our bullish expectations for the upcoming week. The probable support in the Weekly chart comes at the 8 Day Moving Average (presently at approx. 10258.0) and the 5 Day Low EMA (presently at approx. 10179.7).

On the upside, Nifty may face resistance at the Upper Bollinger Line (presently at approx. 10466.8).
The weekly CCI and Slow Stochastic are in the overbought zone. RSI remains close to the upper bound of its normal range, indicative of mildly bullish sentiment. ADX shows lack of any momentum.

Figure: Nifty Weekly Chart

Figure: Nifty Tech Table


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