Nifty (Close 9796.05): Nifty opened gap down and the fall continued throughout in today’s session. Today’s fall was due to geopolitical concern emanating from North Korea.
In the Hourly chart, Nifty is standing at the lower edge of the symmetrical triangle and the break below this may lead to more correction. However, it may see some consolidation in the coming days if it stays above this level. Moreover, 200 Hourly moving average was a strong resistance for Nifty which acted as a strong resistance in the last attempt.
On the upside, Nifty may face resistance at 20 hour moving average (presently at approx. 9864).
Hourly CCI and Stochastic are in the oversold zone while RSI is close to the lower bound of the respective normal zone. Hourly ADX is steadily moving up which suggests that market may continue to see some momentum in the coming days. Overall Nifty remains bearish in the hourly chart.
Figure: Hourly Chart
Nifty has closed below 5 Day Low EMA and all short term moving average in the daily chart. The mid-bollinger line acted as a strong resistance and this was the second time, it couldn’t breach this level.
On the upside, Nifty may face resistance at 8 DMA (presently at approx.9835), 5 Day High EMA (presently at approx. 9885) and 34 DMA (presently at approx. 9912). The probable support in the hourly chart comes at lower Bollinger line (presently at approx. 9668).
The daily RSI, CCI and stochastic are in the neutral zone. However, the declining ADX indicates lack of momentum. Overall Nifty remains bearish in the Daily chart.
Figure: Daily Chart
Figure: Tech table