Daily Time frame Analysis
- On Friday Nifty 50 the benchmark Indices closed at 15670 (-20.10) (-0.13%).
- Opening with Gap-Up since last 3 sessions, the buyers had total control in last week, Intraday buying was seen in almost every session from lower levels.
- Daily closing may seem a bit week but weekly closing purely indicates the buyer’s dominance.
- Market moving at ALL-TIME HIGHs and VIX under total control indicates no major profit booking is likely in coming days.
- RSI MOMENTUM Indicator closed at 70- OVERBOUGHT ZONE, the profit booking may retreat the indicator around 55-60 levels which will be a roughly 2-3 % downside move till the buyer will be back in action.
- MACD indicates strong momentum but the current levels around the resistance.
- The Fibonacci 1.272 extension level come around 15700-15800, which will be halt for buyer before extending the run towards 1.618 extension level which is around 17200 level for medium view.
- The current minor trend’s retracement come around the 15250-15350 support zone as per trend line and the prior ATH as shown in the chart.
- Strong CALL WRITING was observed on the strike price CE15700 with OI 0f 38 Lakh, whereas no significant OI build-up was seen on the PUT side. This indicates the upside is capped.
- In FUTURE OI data more LONG UNWINDING was seen in BANKNIFTY compared to NIFTY.
- Banking underperformed a bit in last 2 sessions, IT may now dominate in coming sessions as global cues may have some dominance.
Hourly Time frame Analysis
- The strong hourly Up trend suggests small ebb-flows with intraday buying in last week.
- On applying 9-hour moving average Nifty closed below the MA. Taking in to account the 20MA will be the mean reversion for the recent move if the prices stay below 9MA decisively.
- If the current uptrend is violated as shown in the chart, we may see nifty retreating back around the cloud’s leading Span A&B to support. That are placed at 15630 – 15550 – 15500 for coming 2-3 sessions.
- The prices are consolidating around the 15700 mark since last 2 days, any significant gap up will lead to profit booking from higher levels. The index staying above trend line will act as the buyer’s territory for continuation. The violation of trend line will force the index to move in the consolidation range (15800-15300) with buying pressure as the big boys are heavily long in both Cash and Futures.
- Any strong closings above short-term 9 HMA, uptrend may resume in intraday basis.
- Hourly RSI indicates a positive to neutral view for the coming 10-20 candles as it supports the 40 level. If the indicator find 60 a resistance twice with 2 wave pattern, then the seller may dominate and further selloff may trigger on intraday basis.
IMPORTANT LEVELS TO WATCH FOR INTRADAY AND SWING TRADING
15320 – 15470 – 15550 – 15650 – 15730 – 15830
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