Nifty managed to close above 11550 level on a weekly closing basis after a sharp recovery in the second half of the trading session on Friday and the festive cheer was clearly visible on Dalal Street.
The market will remain open for one hour on 27th October for Muhurat trading which is considered very auspicious and any investment made during this hour is believed to bring wealth, good fortune and prosperity. The Indian market will remain closed on 28th October on account of a public holiday and the usual trading will resume from 29th October.
Nifty is consolidating in a flag pattern in the hourly chart and faced resistance from the upper line of the flag pattern and ended right below 50 hourly SMA (11589).
Sustainable break above 11620 may lead to short term breakout in the stock which is likely to act as a short term resistance as of now. On the downside, 11475-11500 likely to act as a short term support and 38.2% Fibonacci retracement also coincides with 11475. Technical parameters including RSI, CCI and MACD look neutral to weak as of now.
Nifty Hourly Chart
In the daily chart, Nifty is trading right below downtrend line and resistance zone of 11600-11720 and likely to consolidate or stay weak until this zone is taken out on a closing basis.
Probable support in the daily comes at 11460-11500 which is likely to act as a crucial support in the near term. Technical parameters including RSI, CCI and MACD look positive as of now.
Nifty Daily Chart
In the weekly chart, Nifty is in a strong long term uptrend and as long as the index is above 11200 on a weekly closing basis, the uptrend is likely to stay strong.
Presently it’s trading right at the weekly resistance area; breakout above the swing high may lead to breakout in the index. Technical parameters look neutral to positive as of now.
Nifty Weekly Chart
Nifty Tech Table