Nifty was under pressure on most of the sessions and repeatedly tested the base at 17770. However, the final session saw a decent rally. The range is seen narrowed compared to. Nifty ended up with an indecisive Doji candle on the weekly charts. With 17770-90 region holding for the fourth consecutive weeks, we may see a break out during the ensuing week.
A few observations from the weekly charts are:
Weekly charts suggest that
Expected scenarios for the ensuing week
Though closed at 17956, the Index is expected to open flat or higher
Going forward the 18350-18470 zone, is likely to be a major barrier
For the ensuing week, the index may find supports at 17860, 17770 and the index could face resistances at 18150, 18270, 18360
Additional interesting observations
FIIs were net negative and DIIs were net positive
Expected range would be 17770-18360 with a precondition of close above 18k
Any close outside the range of 17770-18360 requires re-assessment of risk
Final Note
Nifty is at a make or break situation and the Bulls have the last opportunity to take control.
The consolidation phase seems to have got completed and preparing for the next move and the direction of this would be clear by the end of this week
The crucial support at 17770 holding for the fourth consecutive week gives hope for some recovery and even a possible attempt closer to the recent peak.
The Index seem to move 185 points on either side by taking 17950 as Pivot
The technical factors indicate a mixed signal
The index is caught in a tiny triangle with base at 17800 and top at 18000
There are chances for upside if the Index closes above 18140 with sharp move to gather momentum
There appears to be a reasonable similarity between the formation during first week of Oct 22 and first week of Jan 23.
If we see a continuation of Friday’s move, the formation in the line charts would be a double bottom and we may possibly see an attempt towards the long term trend line
If for any reason the support at 17770 breaks, then we may see a fall towards 17320 and the 17035
Very interesting week ahead
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
A few observations from the weekly charts are:
Weekly charts suggest that
- The index moved around 380 points viz. between 17761 and 18141
the oscillators are turning positive
Option OI is expected to drive the market direction
17770-790 continues to be the crucial support zone
Expected scenarios for the ensuing week
Though closed at 17956, the Index is expected to open flat or higher
Going forward the 18350-18470 zone, is likely to be a major barrier
For the ensuing week, the index may find supports at 17860, 17770 and the index could face resistances at 18150, 18270, 18360
Additional interesting observations
FIIs were net negative and DIIs were net positive
Expected range would be 17770-18360 with a precondition of close above 18k
Any close outside the range of 17770-18360 requires re-assessment of risk
Final Note
Nifty is at a make or break situation and the Bulls have the last opportunity to take control.
The consolidation phase seems to have got completed and preparing for the next move and the direction of this would be clear by the end of this week
The crucial support at 17770 holding for the fourth consecutive week gives hope for some recovery and even a possible attempt closer to the recent peak.
The Index seem to move 185 points on either side by taking 17950 as Pivot
The technical factors indicate a mixed signal
The index is caught in a tiny triangle with base at 17800 and top at 18000
There are chances for upside if the Index closes above 18140 with sharp move to gather momentum
There appears to be a reasonable similarity between the formation during first week of Oct 22 and first week of Jan 23.
If we see a continuation of Friday’s move, the formation in the line charts would be a double bottom and we may possibly see an attempt towards the long term trend line
If for any reason the support at 17770 breaks, then we may see a fall towards 17320 and the 17035
Very interesting week ahead
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.