In our last article, we have told that we are expecting to sell on every rise market and the market reacted the same. The reason behind this was a weekly chart has given negative signals and the market took support from the mentioned levels.
Technical Overview of Nifty: As mentioned previously, Nifty has given bounce from 11100 and this level is playing the role of strong support. On Wednesday, Nifty has given a good spike and closed at day high. We can say that Morning Star has been created near support. As per our view trend is neutral now and in the last two trading sessions, Nifty not break the range of 11400 to 11200. If we see a weekly chart then closing is strong.
Risky players can buy Nifty here i.e. 11300 and keep a stop loss of 11100 on a closing basis. Also, small players sell at the same level and keep SL of 11400. The target for buyers is 11400-11500 and seller 11200-11100.
Technical Overview of NiftyBank: If we talk about Bank Nifty then it is still looking weak on chart i.e. weekly as well as daily. On the daily chart, Morning Star has created in last week and next day Bullish Harami. This index trading in a range i.e. 28500 to 27600, as we caught previously 27600 is strong support here.
Here are no big levels for the buyer as well as the seller. We have to wait till “Breakout” or “Breakdown”. However, we can work with the same strategy i.e. buy near support or sell near resistance with chart confirmation.
Nifty has given closing above 200 DMA and Bank Nifty has resisted from its 200 DMA.
Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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