Hourly Chart

Nifty Reacts With Fed Rate Hike, Down By 186 Points (Approx.)

by Mitali Dutta on Market Analysis, Market Wrap

Nifty close 10754.85: This week market ends on a negative note. With global market sell-off which was due to US Fed rate hike, our bench mark index plunges approx. 185 points.

This week nifty started with a gap up opening and up to Wednesday it continued its upward movement. But after the Fed rate is announced the global market started unloading the shares and our Nifty follows the weak global cues.

At the end of the Friday’s trading session Nifty is below approx. 230 points (approx..) from its recently made swing high and ends with a long Red candle. The pullback may be because of 100 MA line, which is presently lying on 10932.38 (approx) level.  Presently the index is trading just above the 10750-mark support level. And this level is currently represented by Mid Bollinger line (presently at approx. 10772 Mark).

Hourly Technical: At this moment Nifty is trading outside the Bollinger Band and it is also above its 100 (presently at approx. 10751.77) and 200MA (presently at approx..10737.89) lines. But in other hand it is also below most of the short and medium term MA lines.

Let’s explore the indicators position, RSI is below 30 mark, Stochastic is just above the 5 (oversold), ADX is above 28 mark and CCI is -150 level.

So overall sentiment is super bearish but due to the current position of the Nifty we can expect it would go sideways for couple of trading hours.

At this moment Nifty may face resistance on 10800 mark and for support we can expect 10700 mark will act.

Hourly Chart

(Hourly Chart)

Daily Technical: As we mentioned earlier the index took resistance from 100 MA line (presently at approx.. 10932.38). and it stopped at near its Mid Bollinger line (presently at approx.. 10772.63). apart from the Mid Bollinger 200 MA line is also going to prove support to the index and it is presently at 10766 mark (approx.)

Let’s, discuss the indicators, RSI is just above 50, Stochastic is above the 60 mark, ADX is above 10 and CCI is just above the 30 level.

So most of the indicators are slopping down and we have a negative crossover in the Stochastic indicator.

From the chart we can expect Nifty is going to hold this level for few trading sessions but if further downfall takes place, we can expect 10500 mark is going to act as an important support and in case Nifty push back from this level 10800 mark will be its important Resistance.

Daily Chart

(Daily Chart)

Weekly Technical: In the weekly chart we can see the index push back from Mid Bollinger line (presently at approx. 10895.80). 34 MA line also acted as a resistance. Presently Nifty is at a support of 50 Ma line which is presently trading at 10753.32 (approx.) level. Just like the 50 Ma line, most of the MA lines are below the price, so there will be multiple support in case of further down fall takes place.

Let’s have a look on the indicator, RSI is just below 50 mark, Stochastic is just above 50 mark, ADX is at its 17 level (approx.) and CCI is just below 0. So indicators are flat at this moment and also showing little weakness. If further downfall happens 10200 mark will act as support or if the index bounce back from this level 10950 mark is going to act as strong resistance.

Weekly Chart

(Weekly Chart)

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Technical Chart

(Technical Chart)


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