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Technical Picks: Nifty & Bank Nifty

Way2wealth | 31 Jan, 2017  | Follow Author | Add to my Favourites 
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Technical Picks:

       

Nifty: It was a spectacular week, as we have seen almost a vertical up move throughout the week and Nifty eventually closed at highest level since October 21, 2016 on weekly basis. During the week, the magnitude of buying interest was so sharp that index surpassed the crucial resistance of 8525 / 8550 with an ease and extended till 8673. During the week, the impact of 45- EMA of daily RSI (14) was seen as it entered inside the 60 mark during its previous week which eventually led to an acceleration. The last week candle has formed long bullish candle. Looking at the daily candles, we are seeing multiple price close support as each candle’s intraday low was well above its previous day’s close indicates inherent strength. As Nifty rose nearly 350 points in last four trading session; the possibility of breather or minor profit booking is quite likely however traders should refrain to create any short position infact one should look to enter long in case of any meaningful dip. Going forward, 8737 which coincides with the 78.6% retracement which will act as an immediate resistance and any sustain move above this level allow Nifty to extend the ongoing optimism till 8900. On the flip side, 8500 / 8460 zone will act as a strong support. On account of Union Budget which is slated on February 01, 2017, we may see significant volatility in our market hence traders are advised to avoid any leverage trade.


Bank Nifty:
In line with the benchmark indices, Bank Nifty too witnessed mammoth buying interest throughout the week. As a result, index concluded the week with a hefty gain of 4.72 percent over its previous week. During the week, Bank Nifty surpassed its swing high of 19276 which led to acceleration in momentum and index rallied till 19795. The shooting star candle mentioned in our previous update was negated as Bank Nifty went above the pattern high of 19276. Looking at the daily chart, Bank Nifty has retraced 78.6% of its entire swing move also we are seeing a downward sloping trend line joining from its swing highs. Hence, index may find minor resistance near 19990 any break above this level will extend the ongoing up move till 20310 / 20576 levels respectively. On the other side, immediate support comes near 19470 below which the next support comes near 19276 which had reversed its role (change of polarity rule).


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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