WEEKLY RESISTANCE FOR NIFTY: 18725, 18850, 19000
PIVOT POINT: 18600
WEEKLY SUPPORT
FOR NIFTY: 18525, 18420, 18200
WEEKLY CHART FOR NIFTY
Indian equity markets started the week on
November 21, 2022 on a subdued note, taking inspiration from the gloomy Asian
stock markets. The leading index Nifty slipped into the bullish gap right at
the beginning of the opening bell and stayed in a narrow range in the lower
area throughout. The bulls were reluctant to capitalize on the dip, with Nifty
ending the day down 0.81%, just above the 18150 level Session on Tuesday,
November 22, 2022 started on a flat note. Shortly thereafter, the bulls took
the opportunity and rallied slightly in the index after observing narrow
range-bound moves for most of the day. Amid the lackluster session, the bulls
staged a comeback in the last half hour, snapping up the lost momentum of the
past three days. The Nifty closed near the daily high, rallied nearly half a
percent and settled slightly below the 18250 level. The Indian stock market got
off to a promising start on Wednesday 23rd November with a decent gap up in the
benchmark index but the bulls failed to capitalize on the initial gains and the
index plunged to lower levels. The frenzy continued throughout the session as
we witnessed an intense tug of war between bulls and bears. The sell-off at the
end of the trail caused Nifty not only to pare initial gains, but also to slide
into negative territory. After such a price move, the index finally
closed the session near the daily low, slightly above the 18250 level, gaining
just 0.13%. The positive global developments led to a firm start for our stock
market on Thursday 24th November 2022 and the benchmark index gradually
continued to rise as the session ended. The broad-based buying has lifted
overall market sentiment, which certainly reflects the drive of D-Street bulls
in favorable conditions. The Nifty50 Index finally closed the day at a 52-week
high with gains of 1.19%, slightly below the 18500 level. Markets took a
breather after Thursday's surge and closed on Friday 25th November 2022 ,
almost flat. The Nifty Index opened marginally lower and ranged until close to
close at 18512.
NIFTY: STRONG SUPPORT& STRONG
RESISTANCE LEVEL
Technically, the index has maintained its cycle of higher
highs and higher lows, decisively breaking its previous swing high on the
chart. At the same time, the strong bullish candlestick pattern and lively
market participation on the expiry date suggest an encouraging sign for the
market. On the level front, the 18200-18000 level is expected to cushion a
slight decline from the ongoing upside. At the same time, the index is well
positioned to recapture the lifetime high zone and break new ground in a
comparable period. With the benchmark at a record high, an improvement in
broader participation would play a crucial role in shaping the market trend. In
addition, the development of the global markets will continue to weigh on
sentiment. We recommend following the trend and focusing on identifying the
themes that could evolve alongside current leaders.
TECHNICALLY SPEAKING
Markets ended flat in a sluggish trading session as investors
stayed on the sidelines on a lack of clues from the US markets, which closed on
Thursday. While most Asian gauges ended in the red, local benchmarks managed to
post modest gains on thin volumes. Markets could react sharply on Monday if
guided by overnight US market closes on Friday. The daily chart's Nifty50 is
trading in a higher-high-higher-bottom formation and the extended upward
movement in prices is suggesting a strong bullish trend. In the last few minor
pullbacks, prices took support near their 21-day exponential moving average and
thereafter an immediate recovery was seen. Now the polarity rule is applied in
Nifty where previous resistance acts as instant support for the market. The
momentum oscillator RSI (14) on the daily chart has formed a bullish hidden
divergence between 55 and 60 levels, after which the index started to climb
higher with further strength. Technically, support for the index is near 18200
and any move below this will extend the decline towards 18000. Similarly, on
the higher side, 18700 will be the immediate resistance, followed by 18900
levels.
No comments:
Post a Comment