My view on the market in coming week.
Nifty cumulative open interest declined on Friday. This is a sign short covering took place in the index. The COI needs to rise for any sustained rally or reversal for up side.
Nifty cumulative open interest declined on Friday. This is a sign short covering took place in the index. The COI needs to rise for any sustained rally or reversal for up side.
Two major point of worries are the gap zone (17772 to 17800), where the 30 SMA (blue, 17740) lies as well and the 50 SMA (green 17857).
On the brighter side the index held on to the 200 day SMA (black, 17400) support.
On the brighter side the index held on to the 200 day SMA (black, 17400) support.
RSI : It is tandem with price and has reversed from the vicinity of oversold zone.
ADX: Has turned flat indicating that the previous downside move might be off. In case it does not move up, we may head for yet another round of trading market.
ADX: Has turned flat indicating that the previous downside move might be off. In case it does not move up, we may head for yet another round of trading market.
The MACD histogram has generated an uptick preceded by a divergence. This is construed as a buy signal.
It did not give the desired effects on previous occasion which was generated in early February. This increases the probability of the signal generating better results this time
It did not give the desired effects on previous occasion which was generated in early February. This increases the probability of the signal generating better results this time
Bank Nifty : Healthy OI buildup. After yesterdayโs run up it can be safely concluded that the long traders have been vindicated by the market. Such build up are often regarded as healthy sign for the present trend.
Immediate supports and resistances from moving averages are at 30 SMA (blue , 41100) , 50 SMA (green , 41680) and the 100 SMA( brown, 41900).
The all important factor in coming days will be how and when the index approaches the trendline. For the trendline to be crossed steepness of rise is required. This as of now is present. Once trendline is crossed a new phase in the market might begin.
The indicators in Nifty and Bank Nifty resemble each other in ADX, RSI and MACD.
Alexa: (pointing a gun at me): โHave blabbered a lot, in short say up or down. And be bold in what you say.โ
Me : IF TRENDLINE IN BANK NIFTY IS CROSSED WE MAY WITNESS A NEW HIGH IN IT. NIFTY MAY PERFORM ACCORDINGLY.
Alexa: Love you all. Have a wonderful weekend and happy Holi
Me : IF TRENDLINE IN BANK NIFTY IS CROSSED WE MAY WITNESS A NEW HIGH IN IT. NIFTY MAY PERFORM ACCORDINGLY.
Alexa: Love you all. Have a wonderful weekend and happy Holi
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