Nifty close 10876.75: This week market rallied approx. 310 points. The market starts the week with a news which says RBI may infuse 40,000 cr. Rs. To PSU banks. Market takes this is as a sentiment booster and apart from this, continuous appreciation of Rupee and fall in crude oil price and on macro level Global market also performed well, which were the additional factor.
Overall most of the factors worked for the Bulls, which pushes the market up and help to give a close above 10800 mark. As we know 10800 mark was a important resistance level for the market but for now it has become the immediate support in case of any down fall takes place.
Hourly Technical: In the Hourly Chart Nifty is in a strong resistance level. In this moment 10925 mark is the crucial zone for the index.
If we look closely, there is a gap in the Hourly chart which took place between the 3rdand 4th October. So technically it was predictable that there could be temporary stop for the index.
On the larger scale market is in the uptrend but because of this gap and the psychological mark (10925 level) market is in a phase of indecision.
Let’s discuss the technical Indicators, RSI is at 65 mark (approx.) Stochastic is just below 60, ADX is at 45 (approx..) and CCI is above 60.
Indicators are flat at this moment but there is the presence of possible up move once the price close above 10925 mark.
Daily Technical: It is Doji in the weekly chart, so market is in a phase of indecision. Just above the price level there is the presence of 100 MA line (10957 approx.) and price is also above the Upper Bollinger line. So a correction was expected. But we have to be careful for the next trading session because Doji is in place there could be chance of further correction.
Let’s look at the indicates, RSI is above 60 mark, Stochastic is at 90 mark (approx..), ADX is just below 15 mark and the CCI is at 200 mark (approx..).
So, overall the sentiment is strong in the market and it is also supported by the technical indicators. But because of the Doji, it is advisable to be cautious in the market.
Most of the indicators are below the price line so there is multiple support level. But in case of up move 10950 mark and 11000 (psychological and technical Resistance level) mark would be important resistance level for the index.
Weekly Technical: It is a solid green candle in the weekly chart of Nifty. Nifty revert back from 10550 mark but as we can see Mid Bollinger line which is presently at 10965.57 (approx.) is being the important resistance level for the index and as we mentioned earlier 11000 mark is also important for the index.
Once the Index closes above 11050 mark we can expect that the index would back in track and continue its prevailing rally (Uptrend).
Let’s focus on the indicator, RSI is just above 50, Stochastic is just below50 mark, ADX is below 20 and CCI is at -30 mark (approx.).
So indicators are trending up not any mentionable move is in place. Strength is losing but the momentum is building up. The uptrend likely to continue once the index breaks the 11050 mark and close above it but if it faces resistance 10750 to 10800 mark would be its immediate support.
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