The recent move this week was the outcome of recent announcements ranging from withdrawal of tax surcharge, removal of the angel-tax provision on start-ups, recapitalization of PSU Banks, faster GST refunds and quicker transmission of rate cuts.
Another important announcement was made post market hours where the decision to combine ten public sector banks into four banks could be another positive trigger on Monday.
Finance Minister has also promised to announce more such measures in the coming days. These announcements could come in the coming days, which was sufficient to bring more optimism among investors.
This is the monthly chart of Nifty where the index is clearly in an uptrend and closed right above 20 MA and the uptrend is likely to stay intact as long as Nifty is above 20 MA on a closing basis. Present candle is a Hammer which suggests possibility of further bounce in the long term chart if 11200-11250 is taken out on the upside.
In the hourly chart, Nifty is still trading below downtrend line and probable resistance in the short term comes at 11050 and next crucial resistance at 11150-11180. Probable support in the near term comes at 10870-11920.
Most technical parameters including RSI, CCI, Stochastic and MACD looks positive as of now in the hourly chart.
Nifty Hourly Chart
In the daily chart, Nifty faced resistance from crucial resistance of 11150 and next important resistance comes at 11200; below which the index is likely to stay weak. RSI too facing resistance from 45-50 level suggesting near term weakness. Probable support in the daily chart comes at 10880-10950.
Nifty Daily Chart
In the weekly chart Nifty consolidating between 50 and 100 MA. Sustainable weekly close above 11200-11250 may lead to change in trend on the upside. Nifty likely to consolidate until it breaks either side of the range 10800-11200 on a weekly closing basis. Technical parameters still looks neutral to weak as of now in the weekly chart.
Nifty Weekly Chart
Nifty Tech Table