Nifty plunged 500 points throughout the week registering a low of 10637; followed by sharp recovery on Friday amid growing hopes for a rollback of taxes for foreign portfolio investors. The news came out in the evening that FM rolls back FPI Surcharge. The government has also decided to withdraw enhanced surcharge levied on long and short-term capital gains and enhanced surcharge on domestic investors (DIIs) goes too.
In the hourly chart, Nifty is trading above 5 Hour High EMA and also closed above mid Bollinger Line which suggest short term change in trend in the short term. Probable support comes at 5 Hour Low EMA at 10788 and probable resistance at 10950-10970 which has a convergence of 50 & 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 formed positive divergence in RSI and Piercing pattern in candlestick which suggests some bounce back in the coming week and likely to open in green on Monday. However probable resistance in the daily chart comes at 10900-10950 which has a convergence of downtrend line and resistance zone. Probable support comes at 10600-10650.
Most technical parameters including RSI and CCI are trading close to oversold zone while CCI is still in the oversold zone in the hourly chart suggesting weakness as of now.
Nifty Daily Chart
Nifty witnessed sharp selloff on Thursday after it violated weekly 200 MA at 10880 and bounce back is expected on a broader basis if the index sustains above 100 MA on a weekly basis. On the upside, 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