A week ahead: Do you have to march more for the resistance area? | Indian analysis

The past was a short trading week in just three days. But Indian stocks continued to surge and showed elasticity, and in that week, it ended with positive notes. Before this week, Nifty was able to defend 100 weeks MA. Last week, it was higher and closed in 50 weeks of MA. The range of transactions has narrowed. The index vibrated in the 665.35 point range. Volatility is also cooled. India’s walls decreased by 23.08% to 15.47. While it was largely stable with a powerful fundamental bias, the headline index closed with net profit of 1023.10 points (+4.48%).

There are several techniques that need to be observed closely. NIFTY exceeded the level before resisting the 100 -day moving average (DMA) at 23395. NIFTY, which has enlarged the weekly chart, is now closed at 50 weeks MA, currently deployed at 23885. Nifty is more than 24000, but the market is likely to be integrated between 23900 and 24000 levels. The main decline is unexpected, but the rise is likely to be at least breathe at this level. It is important to see Nifty’s actions on this level.

The upcoming state can start with a stable note. The level of 24,000 and 24,210 is likely to act as a resistance point. Support is lowered at 23345, 20 weeks, which is lowered from 23500.

Weekly RSI is 53.94. It forms 14 duration heights, showing an optimistic trend. Weekly MACD showed a positive crossover. It is now optimistic and traded on the signal line.

According to the pattern analysis of the weekly chart, NIFTY has returned to an important level of the 50 -week moving average, which shows that it was previously violated when correction started. 200-DMA, placed at a short distance from this level and 200505550, is likely to provide resistance. This means that the market is entering the main resistance area. Unless the 24050 does not take up, we expect the market to be integrated, showing some recovery for the next few days.

Overall, it is time to focus on protecting profits at higher levels. Although you can continue to invest on a long side, new purchases should focus on pockets that show the improvement of relative intensity at a lower level and reverse the trend. Effective rotation will be important to improve the relative strength and protect the interests of your hard work. In the coming week, a carefully positive view is recommended.

Analysis of the upcoming week

Looking at the relative rotating graph ®, we compared various sectors with the CNX500 (Nifty 500 Index), which represents more than 95% of the free float market cap of all listed stocks.

The relative rotating graph (RRG) shows that the wonderful PSU banks and consumption indexes were rolled within the main quadrant. Products, financial services, charities, infrastructure and metal indexes are also placed within a leading four -section. Although the metal index is weakening of relative momentum, these groups are more likely to be relatively skillful than the wider NIFTY 500 index.

There is no sector in the weakening quadrant.

The pharmaceutical category rolled inside the delayed four. The IT index is also triggered inside this quadrant with the MIDCAP 100 index. Real estate and media indexes are also within the delayed four -side surface. But they appear to greatly improve their relative exercise for wider markets.

Nice PSE, Energy and FMCG Index are inside the improvement four -section. They are expected to continue to improve their relative results for the next week.

Important reference: The RRG ™ chart shows the relative strength and momentum of the stock group. The above chart shows relative performance of the NIFTY500 index (wide market) and should not be used directly as a purchase or sales signal.

Milan VashnaV, CMT, MSTA

Technical analyst consulting

www.equityRESEASIA | www.chartwizard.AE