Hourly Chart

Nifty Is At A Crucial Resistance Level, Ends the Week with A Flat Note

by Elearnmarkets on Market Analysis, Market Wrap
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Nifty close 10585.20: The benchmark index ends the session with a flat note. The market has been in a. uptrend from last two weeks but Thursday and Friday’s trading session makes the market direction uncertain. In other hand rupee is also standing at an indecision level where crude is in a solid downtrend.

Next trading session will be the deciding factor for the Index. Technically it is in an important resistance level which is 10700 mark. Above this level there is 10800 mark where index will face resistance.

Most of the short term MA lines are below the price level where longer term MA lines are above the price {50MA (10861.16 approx.),100MA (10968.28 approx.), 200 MA lines} which will create strong resistance for the Index.

Hourly Technical: As we can see in the hourly chart the index is in a basic uptrend but at the tail part it is pretty much flat. In the last two trading session market traded within a range bound level (10550-10600) which makes the market direction uncertain at this point.

However, most of the Ma lines are below the price in the hourly chart so in case of any downfall there will be multiple support for the index.

Let’s have a look on the Technical Indicators, RSI is just below 60, Stochastic is at 73.10 (approx.), ADX is on the 30 mark (approx.) and the CCI indicator is 61.62 (approx.).

There is no significant sign from the indicators, indicators are also flat due the flat price movement. But Strength and momentum is in the favour of bulls.

Hourly Chart

(Hourly chart)
Daily Technical: As discussed earlier Nifty is in a solid resistance level and at this level consecutive two flat trading days makes the market direction unpredictable to some extent. Break above this level will create a new rally for the index however, 10800 mark is going to be the another road blocker for the benchmark. Psychological level 10500 mark is an important support level and in case Nifty breaches this level 10350 mark will be the another major support.

Indicators are flat, RSI is at above 50, Stochastic is above overbought level but trading flat, ADX is above 25 but it is also flat because less price fluctuation and CCI is just below 100 level.

Momentum and the strength is flat for the index but it is in an overbought level.

So as we mentioned earlier next trading session is going to be the deciding factor.

Daily Chart

(Daily chart)

Weekly Technical: Nifty ends this week by making a Doji candle. As we know the nature of Doji, it is a phase of indecision. The index is at a resistance level so, formation of Doji at this level is not so surprising.

Just above the latest candle there is the presence of 50 MA line (presently at approx. 10712.59) which is considered as an important MA line in the weekly chart and this line is creating the resistance for the index. So it is expected that if the index closes above the 50 MA line bulls will gain their confidence back and push the market higher.

Let’s discuss the indicators, RSI is at 45 level (approx.), Stochastic is just above its oversold level, ADX is at 22 mark (approx.) and the CCI is -70.06 (approx.)

Indicators are also trading flat. As mentioned before, the next trading session is going to be deciding factor for the index. So keep a close watch before taking any call, wait until the market takes a certain direction.

Weekly Chart

(Weekly chart)

You can use stockedge app to get cutting edge over others in both short term trading and investing. Here you not only get data at one particular place but can also create your own combination scans based on your own technical and fundamental parameter. See the video below to know about various features in Stockedge app.

Nifty Technical Table

(Nifty Technical Table)

 

 

 

 

 

 

 

 

 

 

 

 

 


  •  
  •  
  •  
  •  
  •  
  •  
  •  

Disclaimer

Elearnmarkets.com wants to remind you that all our content is created solely for the purpose of education. No strategy, stock, commodity, fund or any other security discussed here is any way a recommendation for trading or investing. Elearnmarkets.com will not be any way responsible for trading losses incurred by any individual or entity for trading with real money. Please take advise of certified financial advisers before trading or investing.

Speak Your Mind

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.