Nifty Hourly Chart

Nifty Closes On A Negative Note, Breaches Below The 11600 Mark

by Mitali Dutta on Market Analysis, Market Wrap

This week the market started with a gap down opening and the Monday’s candle was a textbook Marubozu. So it was pretty much clear at that time the bears are in the steering seat. However, the markets tumbled around 11550 zones and manage to hold above the 11550 mark. But unfortunately as we know 11600 mark was an important support for the market, but as the level is breached now we can say that the market is in the Bear’s territory.

The overall price action is indicating that the sentiment is Bearish at this moment and further downside would be possible if the index closes below the 11450 level.

Hourly Technical: Most of the important Moving Averages like 50, 100 and 200 are trading above the price in the Hourly chart. The latest close is below the Mid Bollinger line and we have a spinning top formation just before the last Hours’ candle.

On the indicator side, RSI is below the 50amrk, Stochastic is in the oversold level, ADX is below 25 and the CCI is trading at its negative zone.

So as the overall situation suggests, further downside is possible. In case any bounce back takes place 50MA (presently at approx. 11627 level) likely to act as a resistance and support might come from 11400 level.

Nifty Hourly Chart
(Nifty Hourly Chart)

Daily Technical: As we can see in the daily chart, the market has taken support from its 100MA line (presently trading at approx. 11522 level.). But as the sentiment is totally bearish, closing below the 100MA might help the bears to initiate fresh sell-off.

Technical indicators also referring to the weakness. RSI is trading at its 40 level, Stochastic is below 20, ADX is above 20 and rising and the CCI is below -100.

Overall negativity is there. In case the market closes below the 11450 level, we can expect a fall up to 11200 levels. But if the market bounces back from 100MA, 11700 -11750 would be its resistance zone.

Nifty Daily Chart
(Nifty Daily Chart)

Weekly Technical: As we mentioned in our previous weekly report that there was a Shooting Star formation in the weekly chart (1st July). And this week we witnessed the selloff.

As per the latest price action we can expect further downside likely to take place. The market has given close below the Mid Bollinger line (11597.95) which was an important support for the market and most of the short term MAs are trading above the price.

Technical parameters are all sloping downward. RSI is below 55, Stochastic is below 50, ADX is trading below 15 and the CCI is at 0 level.

As we can understand from the overall price action and indicators’ position, weakness is present in the market. 11000 likely to act as a support if the fall continues and for any pullback 11650-11700 zone likely to act as a resistance.

Nifty Weekly Chart
(Nifty Weekly Chart)

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Nifty Technical Chart
(Nifty Technical Chart)

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