Nifty plunged 500 points throughout theweek registering a low of 10637; followed by sharp recovery on Friday amidgrowing hopes for a rollback of taxes for foreign portfolio investors. The newscame out in the evening that FM rolls back FPI Surcharge. The government hasalso decided to withdraw enhanced surcharge levied on long and short-termcapital gains and enhanced surcharge on domestic investors (DIIs) goes too.
In the hourly chart, Nifty is trading above5 Hour High EMA and also closed above mid Bollinger Line which suggest shortterm change in trend in the short term. Probable support comes at 5 Hour LowEMA at 10788 and probable resistance at 10950-10970 which has a convergence of50 & 100 period SMA.
Most technical parameters including RSI,CCI, Stochastic and MACD looks neutral as of now in the hourly chart.
Nifty Hourly Chart
In the daily chart, Nifty has formedpositive divergence in RSI and Piercing pattern in candlestick which suggestssome bounce back in the coming week and likely to open in green on Monday. Howeverprobable resistance in the daily chart comes at 10900-10950 which has aconvergence of downtrend line and resistance zone. Probable support comes at10600-10650.
Most technical parameters including RSI andCCI are trading close to oversold zone while CCI is still in the oversold zonein the hourly chart suggesting weakness as of now.
Nifty Daily Chart
Nifty witnessed sharp selloff on Thursdayafter it violated weekly 200 MA at 10880 and bounce back is expected on abroader basis if the index sustains above 100 MA on a weekly basis. On theupside, 11000-11200 likely to act as a crucial resistance in the medium term;below which the weakness is likely to persist.
Nifty Weekly Chart
Nifty Tech Table