Hourly Chart

Nifty Washes Off Three Day’s Gain, Closes Below 11500

by Elearnmarkets on Market Analysis, Market Wrap
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Nifty close 11456.90: This week nifty more or less traded in a consolidated range (approx. 11550 – 11413.00 was the range). After the 420 points (approx.) rally, a halt was expected. But the question is – there would be a consolidation or a correction?

Let’s find out.

Hourly Technical: In the hourly chart price has just started drifting downward after the small consolidation. The 50 MA line (presently at approx. 11455.13) has been the support for the Index and most of the shorter term has gone above the price on the last few hours trading session. Once the price closes below the 50 MA there could be further fall. In that case the 100 MA (presently at approx. 11289.64) likely to provide support to the index.

On the other hand, if the price bounces back from the 50 MA line, the 11600 mark would be the resistance.

Let’s have a look at the indicators, RSI below 50, Stochastic is below 20, ADX is below 30 and the CCI is trading below -150 level.

Most of the indicators are slopping downward which suggest the weakness may continue further.

Hourly Chart

(Hourly Chart)

Daily Technical: This week price closed higher on daily basis compare to its previous day, but their intraday charts were pretty much neutral.

However, on the last trading session profit booking has been witnessed. The recent daily candle has closed below its three days’ ago close.

Most of the MA lines are still intact, so this cannot be treated as a short signal. If the index breaches today are low, then further downfall may be possible. In that case the immediate support would be the 11300 level and after that 11150 would be the next support for the index. For the upside, if market starts trading higher 11750 would be the resistance.

Technically, RSI is above 70, Stochastic is above 80, ADX is above 30 and the CCI is at 100 level (approx.).

Overall, most of the indicators are trading at their overbought level. So in this situation a little bit correction should not surprise us.

Daily Chart

(Daily Chart)

Weekly Technical: Nifty made a Doji candle in the weekly chart. But the uptrend was not that prominent, due to this reason it might not work as per the expectation.

On the other hand, price is trading outside of the upper Bollinger line. Due to the natural tendency of the price, it is expected that the price would correct itself and start trading within the Volatility band.

Moving Average lines are below the price so, very less chance for a huge correction. In case price slides 11400, 11100 would be its support.

But if the price crosses 11600 mark, high chance is that price will cross the life time high in one go.

On the technical side, RSI is above 60, Stochastic is above 85, ADX is below 15 but shaping up and the CCI is just below 300.

So the indicators are trading in their overbought level. A slow down or a correction may take place but not sign of big fall.

Weekly Chart

(Weekly chart)
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Technical Chart

(Technical Chart)


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