The recent move this week was the outcomeof recent announcements ranging from withdrawal of tax surcharge, removal ofthe angel-tax provision on start-ups, recapitalization of PSU Banks, faster GSTrefunds and quicker transmission of rate cuts.
Another important announcement was madepost market hours where the decision to combine ten public sector banks intofour banks could be another positive trigger on Monday.
Finance Minister has also promised toannounce more such measures in the coming days. These announcements could comein the coming days, which was sufficient to bring more optimism amonginvestors.
This is the monthly chart of Nifty wherethe index is clearly in an uptrend and closed right above 20 MA and the uptrendis 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 thelong term chart if 11200-11250 is taken out on the upside.
In the hourly chart, Nifty is still tradingbelow downtrend line and probable resistance in the short term comes at 11050and next crucial resistance at 11150-11180. Probable support in the near termcomes 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 resistancefrom crucial resistance of 11150 and next important resistance comes at 11200;below which the index is likely to stay weak. RSI too facing resistance from45-50 level suggesting near term weakness. Probable support in the daily chartcomes at 10880-10950.
Nifty Daily Chart
In the weekly chart Nifty consolidatingbetween 50 and 100 MA. Sustainable weekly close above 11200-11250 may lead tochange in trend on the upside. Nifty likely to consolidate until it breakseither side of the range 10800-11200 on a weekly closing basis. Technicalparameters still looks neutral to weak as of now in the weekly chart.
Nifty Weekly Chart
Nifty Tech Table