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Nifty Closes Below Important 50 DMA Support First Time Last 7 Months

By Vivek BajajMarket OverviewAug 12, 2017 12:49
in.investing.com/analysis/nifty-closes-below-important-50-dma-support-first-time-last-7-months-200196910
Nifty Closes Below Important 50 DMA Support First Time Last 7 Months
By Vivek Bajaj   |  Aug 12, 2017 12:49
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Nifty (Close approx. 9710.8): Nifty after making a lifetime high of 10137.8 in the month of August has corrected more than 4% since then. Nifty is presently standing at a very crucial level of 61.8% retracement (presently at approx. 9712) of the last rise from approx.9449 to 10138. Nifty is firmly bearish in hourly and daily timeframe but a sharp pullback may take place if Nifty sustains above 9774.

Hourly Technical:
Nifty opened gap down in Friday’s session, bounced and again came down to close at 9710.8. Presently in the hourly time frame, the market is below most short term moving averages. The next probable support in the hourly chart comes at lower Bollinger line (presently at approx. 9660.1) and 78.6% retracement of the last move form approx. 9449 to 10138, (presently at approx. 9596.2). The probable resistance comes at 13 Hour moving average (presently at approx. 9773.8) and 20 Hour moving average (presently at approx.9817.9).

The hourly CCI, RSI and stochastic are still bearish and are in oversold zones. Moreover, the rising ADX line also suggests downside momentum in the hourly price chart is very much in place. Overall Nifty remains bearish in the hourly time frame.

Nifty Hourly Chart
Nifty Hourly Chart

Fig: Nifty Hourly Chart

Daily Technical:

In the daily time frame, Nifty has closed below 50 DMA (presently at approx. 9774.7) for the first time in last 7 months. The candle formed in daily chart, however, may halt the sharp downtrend if there is a gap up opening and a follow-up rally.

Nifty is still bearish in the daily time frame and the next probable support in the daily chart comes at 100 DMA (presently at approx. 9538.1) which is a very crucial support and 61.8% projection (presently at approx.9473.6).The next probable resistance in the daily chart comes at 50 Day moving average (presently at approx. 9774.7) and 5 Day low EMA (presently at approx. 9828).

Daily slow stochastic and RSI are still downward facing and trying to reach their lower bound. Moreover, daily CCI has closed below -100 line which suggests that bears are in control .

Nifty Daily Chart
Nifty Daily Chart

Fig: Nifty Daily Chart

Weekly Technical

There is a big red candle in the weekly chart and this fall was roughly 4%. The next probable support in the weekly chart comes at mid Bollinger line (presently at approx. 9546) and 38.2% retracement (presently at approx. 9280.62). If mid Bollinger line is breached on closing basis, Nifty may target for 34 week moving average which is presently at approx. 9180.
The weekly CCI, RSI and % K of slow stochastic has just entered into respective normal zone which is (taking cognizance of weekly candle) bearish to neutral.

Nifty Weekly Chart
Nifty Weekly Chart

Fig: Nifty Weekly Chart

As shown in the following chart, when we project the fall from approx. 8969 to approx. 7894, from recent high of approx. 10138, 100% projection comes at approx. 9063. So this is a crucial level to look forward in weeks to come.

Nifty Weekly Chart
Nifty Weekly Chart

Fig: Nifty Weekly Chart

Nifty Tech Table
Nifty Tech Table

Fig: Nifty Technical Chart

You can also view the Original Report here.



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Elearnmarkets or anyone involved with Elearnmarkets will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals/discussions contained within this website/post. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Nifty Closes Below Important 50 DMA Support First Time Last 7 Months
 

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Nifty Closes Below Important 50 DMA Support First Time Last 7 Months

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anil Vaichal
anil Vaichal Aug 14, 2017 17:20 GMT
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Thanks Vivek... For the accurate analysis... would you mind sharing analysis of couple of stocks the way you share the Index analysis...Thanks again
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