Hourly Chart

Nifty Takes Support At 11600 And Closes Above 11750. Going For A New High?

by Elearnmarkets on Market Analysis, Market Wrap

Nifty close11754.65: The week started with approx. 188 points fall but at the end, the index closes above the 11750. This level undoubtedly an important support and resistance level. So the next trading session is going to be very crucial for the index.

In between there is three consecutive trading holidays and we know there is a rising tension of Lok-Sabha Election. So anything can create an impact on the next trading session.

Let’s explore the possible scenarios,

Hourly Technical: On the Hourly chart, the index is trading above its Moving Average lines and as per the RSI indicator there is momentum present in the Index. So technically, closing above 11800 may ignite the momentum again.

On the down side, breaching below 11565.80 may initiate a correction but in that case, major support will come at 11650 level and 200 MA (presently at approx. 11614.12) is also going to act as an important support.

Indicators RSI is above 60, Stochastic is also above 75, ADX is at 21 level (approx..) and CCI is below 80.

Overall, there is momentum but there is lack of strength.

Hourly Chart
(Hourly chart)

Daily Technical: On the daily chart indicators showing strength as well as momentum. But as we know price action is mother of everything. If the price does manage to sustain above 11800, so further up move could take the price up to 13000 level.

On the other hand, 11500 is the major support at this point. So if the price closes below that, it can correct up to 10900 levels.

Indicator RSI is above 60, Stochastic is also above 65, ADX is above 30 and the CCI is below 100. So, Indicators are slopping down but they are in a good position to support the price in case price starts shooting up.

Daily Chart

(Daily chart)

Weekly Technical: The index has made a dragon fly formation on the weekly chart. However, this pattern came after a consolidation so the significance of that pattern would be less. The shadow of the candle represents that the buyers are still present in the market because they have managed to push the price higher.

As per the indicator, RSI is above 65, Stochastic is above 90, ADX is below 20 and the CCI is also above 100.

Overall, the bull might take the control in case price manage to close above 11880 level but if there is close below the 11500, the price can slide up to 10900.

weekly Chart

(Weekly chart)
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Technical Chart

(Technical Chart)


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