At this point in time technical set up is looking somewhat weak as the market has almost rallied in one way for the last 8 weeks from the lows of 10,550. This vertical move needs to be corrected as it can’t continue in a unidirectional manner.
The price action of the current week depicted a ‘Shooting Star’ kind of formation on the weekly candlestick charts.
Hence, next week if we consistently trade below 11,499 levels then there is a bright chance that we can form a short-term top at 11,620 and then head towards 11,340 on the downside.
Weakness is getting more pronounced in Bank Nifty as bearish patterns are more clearly visible in this index.There seems to be almost a ‘Double Top’ kind of formation in this index as recent high of 28,325 is a tad bit lower than lifetime highs of 28,377 from where it appears to have resumed its downtrend.
A retest of recent low of 27,739 looks inevitable and a decisive close below 27,739 shall lead to the test of its 50-day EMA whose value is around 27,273 as on Friday’s close.Yes, market breadth has significantly improved in recent rallies. But, still, Nifty500 index is yet to make a decisive breakout above its January 2018 highs of 9,895.
Just on last Thursday, the said index has made new highs as it hit 9,900 by marginally getting past January 2018 high of 9,895 but it failed to build on the rally further.
A sustainable up move above 9,900 can significantly strengthen the sentiment in broader markets and can give a much-needed fillip to the mid and small-cap space which remained significant underperformers.New highs can be a far cry for mid and small cap indices in the near future but at least we can see a decent up move in this space as they try to catch up with the broader markets.
No comments:
Post a Comment