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WEEKLY
RESISTANCE FOR NIFTY: 17900, 18100, 18300
PIVOT POINT: 17800
WEEKLY SUPPORT
FOR NIFTY: 17600, 17400, 17200
WEEKLY CHART FOR NIFTY
After a long weekend, our markets started Monday with a small gap to the upside; Post-opening, however, there was no major traction within the key indices. Optimism returned for the week as Nifty continued its journey north, where the bulls benefited from each dip on the week. The winning streak continued for the third week in a row as Nifty reclaimed 17800 weekly. Despite being a shortened week, the bulls added another 1.30% week-on-week.
NIFTY BANKNIFTY: STRONG SUPPORT& STRONG
RESISTANCE LEVEL
On a weekly basis the Nifty has
managed to close above the 20-week moving average (17790) which is a Bullish
sign. The weekly momentum indicator has triggered a fresh positive crossover
which is a buy signal. On a higher time, frame chart structure has turned in favour
of bulls. Considering the sharp run up in the previous nine trading sessions a
consolidation is highly probable however, it should be considered as a buying
opportunity. In terms of levels, 17860 – 17900 is the immediate hurdle one,
while 17730 – 17700 shall act as a crucial support from short term perspective.
On the upside we expect the Nifty to target levels of 18000.
TECHNICALLY SPEAKING
Price closed comfortably above the March swing high of 17800. This is a very positive development as prices have risen above a significant swing high for the first time this calendar year. From a technical point of view, there is a rounding bottom formation visible on the daily time frame chart that bodes well for the bulls. Also, observing the weekly chart, we can see a fresh buy-signal on the RSI smoothed with its signal line. This points to a short-term continuation of the upward movement. However, one should avoid complacency as this recent non-breather move higher has been very steep and therefore some pause or slight profit booking cannot be ruled out. Therefore, traders at higher levels would be better off taking some money off the table, while in the event of a dip, one should take the opportunity to add bullish bets. With the nine day continuous winning streak, the support level continues to shift higher as we now see immediate support in the 17700 - 17600 zone; while 200-SMA around 17500 is likely to act as a sacrosanct level. On the upside, the next set of resistances is seen at the psychological level of 18000, followed by the next swing high of 18150. The main action during the week was off-index as many front-line and mid-cap counts mesmerizing were moved. Traders should continue to focus on such potential switchers; However, you have to be very picky as the low-hanging fruit is already gone.
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