Hourly Chart

Nifty Ends In Green On Interim Budget, But Fails To Hold 10950 Mark

by Mitali Dutta on Market Analysis, Market Wrap

Nifty close 10893.65: On the Interim Budget day, the index again touches its previous resistance level but fail to hold above 10950 mark. On the second half the market sells off the gains and closes below 10900 level. Overall the day was green but the spike is not ignorable.

This week index ends on positive note and has formed an inside candle in the weekly chart. Also we have witnessed good recovery from 10650 mark. This suggest that the bulls are still optimistic about the market. In other hand, no new High has been made this week by the index and there is a larger spike in the candle on the upside (compare to the previous week). So sentiment is mixed and an indecision phase is still intact in the market.

Hourly Technical: Thanks to the latest up move, this makes the index to close above all important MA lines. But the market is still trading in a consolidated range. 10982 (approx..) was the highest trading price this week. To break the 11000 mark, the index must hold above 10950.

Above that level there would be another resistance level on 11100 level but if the index slips from the current trading zone 10650 would be its immediate support.

On the indicator side, RSI is above 60, Stochastic is just below 70, ADX is above 30 and the CCI is above 80.

This is pure bullish scenario. And it is only because of the interim Budget impact. This is not supported by the longer time frames. So we are not so confident about this move.

Hourly Chart

(Hourly chart)
Daily Technical: Because of the last two day’s Price move, MA lines are below the latest close in the daily chart. In the other hands Friday’s session also creates a spike on the upside.

This week index has formed lower high and lower low compare to the previous week’s trading session. But this does not confirm any immediate effect due to lack of confirmation in the chart. If the index continues trading lower and formed another set of lower high and lower low then the down trend will be confirmed.

Let’s look at the indicator side, RSI is above 55, Stochastic is above 70, ADX is just above 10 and the CCI is at 80 (approx). So the momentum is there but the strength is negligible and it has also gone overbought.

So there may be correction on the down side but if the index closes above 10950 on the daily chart, then it could trade up to 111000 mark.

Daily Chart

(Daily chart)


Weekly Technical: This is an inside bar formation in the weekly chart. All the MA lines and the Bollinger Band are getting tighter. This is purely a breakout or breakdown formation. Only time can tell what is going to take place.

By seeing the larger time fame we are optimistic about the up move but it is not that certain, there is also enough room left for the correction.

On the technical side, RSI is above 50, Stochastic above 90, ADX is below 15 and the CCI is above 50.

Momentum and the strength is dry and the index is also trading at overbought zone but by seeing the CCI we can assume that the up move is possible.

On the upside 11100 is going to be the resistance but if the index goes down 10500 would be the possible support..

 Weekly Chart

(Weekly chart)
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Technical Chart

(Technical Chart)


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