Hourly Chart

Nifty Has Made An Inside Candle Formation In The Daily Chart. Big Move Ahead?

by Mitali Dutta on Market Analysis, Market Wrap
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Nifty close10791.65: Beginning of this week was not so great for the market but despite all geopolitical odds it bounces back from 10600 mark. The end is green with an inside candle formation in daily chart. In the hourly the Nifty ends with the similar setup.

To find out what could be the possible outcome in the next week, let’s zoom into the different time frame.

Hourly Technical: From the last seven hours the market is trading flat. 10750 to 10800 has been the range for the market for the past hours.

As we mentioned earlier the last two candles in the hourly chart has formed inside bar formation. So break above 10800 or breaching 10770 could bring a possible move.

Apart from the price action, the index is trading above all short term Moving averages. Only the two important MAs which are 100 MA (presently at approx. 10816.01) and 200 MA (presently at approx. 10825.76) may act as a possible resistance.

On the technical side, RSI is just below 60, Stochastic is above 80, ADX is trading at 27 (approx..) and the CCI is above positive 50 mark.

Overall, the indicators are on the Bullish side. So if the market start going up there will be support from the indicator side but in case market slides down, the move (down move) will be slower compare to the up move.

Hourly Chart

(Hourly Chart)

Daily Technical: Just like the Hourly chart, Daily chart also has formed an inside bar. If on the next trading session, the market crosses the mid Bollinger (trading at 10807), a good chance of up move will appear.

On the contrary, if the market slides below 10720 level, the 10650 level may be tested.

Important MA lines are trading above the price so there will be multiple resistance level above 10800 mark. Important levels are 10860 (200MA), 10820 (50MA).

Let’s have a look on the technical side, RSI is below 50, Stochastic has come out from the oversold zone and it is trading above 35 mark, ADX is below 15 and the CCI is trading at -15 level (approx.).

So, indicators are at neutral level. But if the up move happens there will be room for the up move to sustain.

Daily Chart

(Daily Chart)

Weekly Technical: The weekly chart has formed a beautiful hammer formation. However, the impact of the candle will be low due to the missing of any pro long downtrend.

The weekly trend of the market is side wise. So, any kind of candle formation in this consolidated zone will be less impactful.

On the technical side, RSI is trading below 50, Stochastic is above 50 and about to give a positive crossover. ADX is below 15 and the CCI is at 25 mark (approx..).

Market still is trading in the consolidated zone. So are the indicators. Until any directional move begins, they will stay in range.

Closing above 11100 or below 10580 will bring back any direction in the market.

Weekly Chart

(Weekly Chart)

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Technical Chart

(Technical Chart)

 

 


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