Nifty witnessed a strong gap up opening on account of strong global cues.The whole market breadth was strongly positive throughout the session with 1012 advances to 329 declines.The markets faced a resistance at 5340 levels,from which the rally started fizzling off.The intraday movement of the markets resembled a falling curve.On its way, it penetrated an intraday support levels of 5300,but somehow managed o settle above 5300 before closing,maintaining the bullish sentiment
Today's move has violated the upper boundary of the wedge indicating a positive breakout.The violation was in the form of a breakout gap,but the spurt was not accompanied by large volumes,also the range of the today's move was limited,hence the sustainability ,or accomplishment of the breakout is doubted.This breakout can also result into an exhaustion ,leading to strong reversal of sentiments.
For a confirmation of a valid breakout nifty should be able to cross 5350 and stay above in following sessions.Today's move was a trigger we need to wait for a confirmation in order to be positional on nifty.Now nifty is trading above the 20 and 40 DMA levels.Within 3 sessions markets has moved far off from the 200 DMA levels.
Going intraday levels should be respected and position should be taken accordingly. The remaining 2 days of this weekseems vital understanding the further picture.The momentum indicator has given a positive crossover on daily charts,While the RSI manages to cross the 50 levels piercing upside.The MACD trades flat due to rising uncertainty and range bound moves,but is still trading below the zero line.
Positive news coupled with global recovery will act as vital ingredients for the markets to rally.
Today's move has violated the upper boundary of the wedge indicating a positive breakout.The violation was in the form of a breakout gap,but the spurt was not accompanied by large volumes,also the range of the today's move was limited,hence the sustainability ,or accomplishment of the breakout is doubted.This breakout can also result into an exhaustion ,leading to strong reversal of sentiments.
For a confirmation of a valid breakout nifty should be able to cross 5350 and stay above in following sessions.Today's move was a trigger we need to wait for a confirmation in order to be positional on nifty.Now nifty is trading above the 20 and 40 DMA levels.Within 3 sessions markets has moved far off from the 200 DMA levels.
Going intraday levels should be respected and position should be taken accordingly. The remaining 2 days of this weekseems vital understanding the further picture.The momentum indicator has given a positive crossover on daily charts,While the RSI manages to cross the 50 levels piercing upside.The MACD trades flat due to rising uncertainty and range bound moves,but is still trading below the zero line.
Positive news coupled with global recovery will act as vital ingredients for the markets to rally.
Comments
Post a Comment