NIFTY violates short -term support. There is still no major trigger
NIFTY is traded sideways all the week and in a range bound method, ending with a slight reduction. The index vibrated within the narrow 276 point range between the lower end, the bottom of 25144.60 and the bottom to 24918.65 before the index was slightly lower. The Indian wall decreased 3.60% to 11.39 for a week, suggesting continuous pride in the market. NIFTY ended every week with a net loss of 181.45 points or (-0.72%).
NIFTY is integrated just below the main resistance zone after attempting a brake out on the current uphill channel. The area between 25100 and 25350 has been proven to be a supply area with profit generation. The wider trend remains the same, and the cool is higher than the main moving average, but still in the complex area. This exercise stops after a sharp move at the lowest level near 21743 in April. Powerful deflection on the area of 25265-25350 can resume the rise with closed confirmation. Conversely, persistent movements of less than 24750 can cause gradual weaknesses and draw nifty to low support.
When we are heading mainly, the market can see a cautious start in the current range of bounds. The immediate resistance is 25150, followed by 25400, 25400. At the bottom, the main support is located near 24750 and 24380.
Weekly RSI stands at 56.54 and is neutral without providing price. It created a fresh 14 period. MACD remains on the signal line on the weekly chart and continues to represent a positive crossover. For a week, significant candlestick formation was not observed.
In terms of pattern analysis, Nifty is traded just below the upper limit of the upward channel. When the index slides down the level of 25000-25150, it will not follow the brake out in this area and face resistance. Price behavior is still higher than the 20 and 50 week moving average and maintains strong from the mid -term perspective. But on the ongoing side, action indicates that there is a lack of new directions.
Given the current technological structure, it would be wise for traders to keep them selectively and protect profits at higher levels. The market does not represent signs of aggressive intensity, and if there is no persuasive movement of 25350 or more, it is recommended to have a stock approach with strict risk management. Traders can avoid aggressive fresh purchases until the movement in the direction is clearly established. A prudent optimism that focuses on stocks with stronger relative strength is an ideal approach next week.
Analysis of the upcoming week
Looking at the relative rotating graph ®, we represents more than 95% of the total market cap of all listed stocks by comparing various sectors with the CNX500 (Nifty 500 Index).
The opponent’s rotation graph (RRG) shows that the wonderful media and metal index rolled in the main quadrant. MIDCAP 100, Realty and PSU BANK indexes are also in the main quadrant. This group is more likely to be better than the wider NIFTY 500 index.
The Nifty Bank, PSE and Financial Services Index are within the weakening four -section. They can experience relative performance reduction compared to wider markets.
Nice service sector indexes, pharmaceuticals, consumption and FMCG indexes continue to be weak within the delay. Among these groups, the pharmaceutical index shows that the relative exercise for a wider market has improved.
The IT index is inside the improvement. It continues to improve the amount of exercise for the benchmark. The automatic index inside the quadrant seems to be deteriorating in relative exercise.
Important reference: The RRG ™ chart shows the relative strength and momentum of the stock group. In the above chart, it shows the relative performance of the NIFTY 500 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
Author Information:
Milan has more than 20 years of professional experience in the capital market and consulting on portfolios and fund management. He is a regular news commentator for writing for many publications around the world. Learn more
