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Technical View: Nifty Closes above 10,800, Are we heading towards a Breakout?

By Traders ChowkcallsStock MarketsJan 09, 2019 08:54
in.investing.com/analysis/technical-view-nifty-closes-above-10800-are-we-heading-towards-a-breakout-200206992
Technical View: Nifty Closes above 10,800, Are we heading towards a Breakout?
By Traders Chowkcalls   |  Jan 09, 2019 08:54
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It was a Range bound session for Nifty on 8th January.

The Nifty50 index opened at 10,786.25 and made a low at 10,733.25 almost immediately after opening. After hitting lows during the first hour of the trade, bulls took control of the street and as demand surged the index managed to hold above 10,800. At the end of the day, it closed at 10,802.15 tad below the highs of the day documenting minimal gains of 0.28%.

On the other hand, Bank nifty had a relatively stronger session and the index managed to close at fresh 3 months highs at 27,509. the index opened at 27,301.90 and built on further gains during the session to close at 27,509.50. it documented measurable gains of 0.75%.

In the following post, I will be throwing light on latest Technical Picture of Nifty and Bank Nifty and will discuss how shall traders be positioned now in Index.

Technical View

For the last few sessions, I have been consistently maintaining my relatively bullish view on Bank Index as compared to Nifty and In today's session Bank Nifty has given a fresh up move and documented new 4 months highs at 27,542.40! I hope my readers have been benefited from our analysis.

I still hold the same view on Bank Index and for index traders, Bank Nifty is more poised towards up move in short term as well as in Intraday time frame.

As far as the technical picture of Nifty goes, it has formed a small consolidation candlestick on daily charts which depicts indecisiveness and a tug of war between buyers and sellers. For Intraday traders, the immediate resistance of Nifty stands at 10,818 (R1) and immediate pivot support is at 10,785 level. Any break above/below these crucial levels may trigger a fresh buying/sell-off in the index. However, aggressive positions on either side of the trade are not advisable at this point in time.

Coming to Bank Nifty, it has formed a Bullish Engulfing Pattern on Daily Charts. Bullish Engulfing pattern shows the strength of Buyers during the session and this positive momentum in the index may continue above 27,544. Bank Index is also trading much above the immediate support levels of 50, 20, 10 EMA indicating the underlying positive sentiment in Banks.

For Intraday Traders, the immediate intraday resistance for the index stands at 27,544 and Intraday support is placed 27,450.

Disclaimer: All views expressed in this site are for reference only. Readers must consult their own investment adviser before taking any investment/trading decision.

Technical View: Nifty Closes above 10,800, Are we heading towards a Breakout?
 
Technical View: Nifty Closes above 10,800, Are we heading towards a Breakout?

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