Nifty close10863.50: The bench mark index was highly volatile throughout this week due to the geopolitical tension. The market started with a positive note but as tension rises in the border, the volatility start rising. At the end of this week Nifty ends slightly higher compare to its previous weekly close.
Due to no major movement, technically the index is trading approximately at same level (+72 points approx.) just like the previous week.
Let’s have the clear picture of the different time frame.
Hourly Technical: Despite trading in the consolidated zone, the index has managed to give the close above important Moving Average line. In near terms 10930 is going to be its resistance and for support we have 10730 level.
On the technical side, RSI is trading above 55, Stochastic is above 80, ADX is below 15 and the CCI is above 100.
The index is trading in the overbought zone. But Correction is not assured due to the consolidation. A move in the upside may take place if the index breaks 10940 on the upside, or on the downside breaching below 10780 would help bears.
Daily Technical: In the daily chart it is kind of an inside bar formation however, this is not a perfectly inside bar. Because the shadow of the candle has crossed the high of its previous candle.
The index is squeezing up for 3 days. A break above previous high or low may create a small up or down move but the confirmation will not be there. As we said earlier, the index has to break 10940 on the upside or breach below 10780 on the downside to certain any move.
Let’s have a look on the technical indicators, RSI is above 50, Stochastic is just below 80, ADX is at 10 (approx..) and the CCI is trading in the positive zone.
Strength is not present in the index and the momentum is also absent. So overall, the sentiment is pretty much neutral.
Weekly Technical:The weekly chart ends in green but it ends up making a Doji. But as we know within a consolidation trading range, the impact of this Doji will not be that much effective. However, if the next week candle crosses its high then it would be termed as the trend continuation pattern.
On the Indicators’ side, RSI is just above 50, Stochastic is at 67 (approx), ADX is below 15 and the CCI indicator is above 70.
As the chart and the indicators speaks, it is a cluster of candles. So no certain direction can be taken out from this chart. One should wait for the breakout or breakdown confirmation to take an entry based on long term view.
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