Nifty Is Trading Near Neckline Support

As per our last analysis on Nifty 50, Nifty has given Inverted Head & Shoulder breakout and given closing exact below of resistance. In last week Nifty has reacted from both i.e. Support & Resistance. Also, there were many holidays that came in this month, so that is the reason the market is not getting a clear direction. Let's see the dip analysis below.

Technical Overview of Nifty: We has mentioned last time 11600 is strong support and 11700 is resistance. And Nifty has reacted from both levels in the last four trading days and given current closing near support. If we see chart then every candle has broken previous candle’s low and given closing above support. We can say here, selling pressure was heavy but buying has happened on every dip.

A safe player can buy Nifty from current levels (i.e. 11585) with a stop loss of 11450 on a closing basis. We are looking at targets of 11700/11750/++. Once cross and close above 11700 then big move expected.

Technical Overview of Nifty Bank: Bank Nifty has made a high of 29690 in last week, now it is trading in the middle of Support and Resistance. Here is also buying is happening in every dip and index is taking the support of 200 DMA. If we combine the last two candles then we can call it Bullish Harami chart pattern. The lower shadow of the last candle is outside the previous candle’s close, so it is not 100%. However, the bullish chart pattern is near moving average support and base on these two things we are bullish in Bank Nifty.

 
Long Bank Nifty from this level (i.e. 29400) for a target of 29700/30000/++. Advice to keep a tight stop loss of 28900 on a closing basis.
 

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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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