Tuesday, February 11, 2020

20 DMA Crossing Down To 50 DMA In Nifty50

Friends, as we have seen on the budget day the market has shown a big fall and this fall recovered in the next 3 days. As we mentioned in our last article Nifty has given closing near 200 DMA and bounced back from the same. Currently, Delhi election results are declared and it is as expected. Due to this the market was opened gap up and closed near day low.

There are many back to back support and resistance on the chart. Also, Nifty is trading in a narrow range i.e. 12050 to 12150. On 7th February Bearish Engulf has confirmed on a chart and the next day market reacted the same.


Now we have to wait for a breakout or breakdown, once confirmation will come then we will clear on the trend. If we see last daily candle then Grave Stone Doji has formed and that is near resistance. Current sentiments are neutral to negative as per candlestick patterns. Also, Nifty is resisting to its 20 & 50 DMA and 20 DMA is crossing down to 50 DMA. The next supports are 12000/11900/11850 and resistance is near 12200. If Nifty crosses and closes above 12180 then up move will continue and closes below 12000 then falls will continue. We are mildly bearish on Nifty 50.


The same the thing happened in Nifty Bank on the budget day and our levels have reached as per Head & Shoulder. Currently, Nifty Bank is trading between its 50 and 20 DMA. The bank index is looking stronger than Nifty and strong support is around 31000. The next resistances are around 31500/31600. If Nifty Bank crosses and closes above trend line resistance then it may touch 32300 i.e. next resistance. We are mildly bullish on Nifty Bank.





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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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