Hourly Chart

Q3 results make the market volatile. Nifty may remain volatile this week

by Mitali Dutta on Market Analysis, Market Wrap

Nifty close 10794.95: Nifty ends on a negative note this week. Q3 results mostly impacted the market and there are too many come out next week. Traders are advised to stay cautious because high volatility may be witnessed.

Technically, at the end of the Friday’s session the Index is trading below 200 MA line. And 100 MA line has been the resistance throughout the last 3 to 4 weeks. Nifty is currently trading below 10800 mark and it is also below the Mid Bollinger line. So we can see for the next week sentiment is pretty much on the Bearish side.

Let’s look at the Micro levels and understand what could be the possible scenario for the next week.

Hourly Technical: In the Hourly Chart Nifty is standing at juncture of point MA lines. If we talk about the important MA lines, 50 and 200 MA is below the price and 34 and 100 MA are above the price. So it is expected there will be hard tussle between Bulls and Bears on the next trading session.

Let’s focus on the indicator side, RSI is below the 50 mark, Stochastic is also below the price, ADX is trading flat and it is at 22 (approx.) and CCI is at -75 (approx.).

So overall indicators are on weaker side but due to the last hour up move some of them slopping up. But as per the ADX the strength factor is missing. In case the index drops from this level the recent support would be 10700 mark. But if there is nay up move 10850 would be the Resistance.

Hourly Chart

(Hourly Chart)

Daily Technical: As we discussed earlier, the index continuously respecting the 100 MA line as a Resistance and on Friday’s session it exactly turned back from that 100 MA line level (presently at approx. 10855.93).

The current close of the index is below the Mid Bollinger line (presently at approx.10815.94) and the price is also below the 10800 mark so for the next session there might be more selling pressure rather than buying.

On the indicator Side, RSI is above 50 but it is slopping down, Stochastic is above 60 but is on a negative crossover, ADX is below 15 and the CCI is below -100.

So overall the sentiment is negative until the Index cross above the 100 MA line and cross above 10900 mark. In case price continue slides down 10700 would be the initial support and after that 10600 would be the another.

For resistance, 10800 mark and 10900 is the most legit resistance levels as per the current situation.

Daily Chart

(Daily Chart)

Weekly Technical: In the weekly chart, the index has made a Doji candle and it is also an inside bar formation. So high chance is that there would be a break out if the index cross 10925 mark on the upside or breaches 10625 level. The direction is unknown to us but we will plan our trade according to the market direction.

Let’s give a look on the indicator side, RSI is at 50 mark, Stochastic is above 80, ADX is below 20 and the CCI is at neutral level (approx. 2).

Strength and the momentum is very much dry at this level but the stochastic has reached its overbought level. If the index breaches the low of the previous candle, then high chance is that the index may correct up to 10200 (possible support) mark but if it crosses the high of the previous candle it may rise up to 11100 (possible resistance) level.

Weekly Chart

(Weekly Chart)

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Technical Chart

(Technical Chart)


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