Nifty close11665.95: This is the second time after eight months The benchmark index has again touched its life time high. Before that, it made three consecutive Doji in the daily chart. Presently the index is trading just below the life time High zone after two days of correction. 11550 level was daily support and from that level it again moving towards its life time high level. On the other side if we look at the weekly chart there is a Doji.
So what could be the possible theme for the next week. Let’s explore different timeframe.
Hourly Technical: Most of the Moving Averages are trading below the price in the Hourly chart, which suggest the recent trend of Nifty is upward. 11750 is the immediate resistance for the index at this moment and on the downside 11600 is the support. In case price breaches below 11625, there could be a retest of 100MA (presently at approx. 11560 level) line.
The indicators are pretty much normal, RSI is below 55, Stochastic is about to dip below 80 level, ADX is trading at 15 and the CCI is below +100 level.
Overall, the sentiment is normal. Once the index closes above 11690 further upside or may be a new high can be witnessed.
Daily Technical: On the Daily chart of Nifty there was a divergence in the RSI indicator. However, it has been resolved with the two days of correction. In case the price dips below 11550, further downside could take place.11350 is the immediate support for the index. On the upside the resistance would be the life time high zone.
On the indicators side, RSI is below 70, stochastic is below 80, ADX above 35 and the CCI is below positive 100.
According to the indicators, the bullish sentiment is still intact. 12000 level would be the possible resistance in case price crosses the recent swing high.
Weekly Technical: As we mentioned earlier, the index has made a Doji formation. So this could lead to a correction or a continuation. Theoretically if the price crosses the High of the Doji there will be trend continuation (uptrend) or in case price breaches below the low of the candle, that will be a reversal.
11000 is the immediate support for the index and the resistance is at 11856 level (according to Trend based Fibonacci extension.)
Indicator RSI is below 70, in the stochastic indicators %k went below %D (negative crossover), ADX is at level 15 (approx..) and CCI is above 200.
So the sentiment is bullish. Closing below the low of the latest candle could lead to a correction. Support will be there at multiple levels but in case price crosses the high, the indicators will be again supportive.
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