Sunday, March 8, 2020

Nifty Broken Down Weekly Support!

Friends, nowadays everybody is afraid of CORONA VIRUS. The positive cases are gaining day by day and no one has medicine on it. This is the big negative thing for everyone and it is impacting on our China & U.S. markets. Due to global negative sentiments, our market has shown a blood bath. If we compare all global markets then our market has fallen too little. I hope this virus will recover as soon as possible and our market as well. Let's discuss chart history and the future.

Technical Analysis of Nifty50: Last Friday, nifty has opened the gap down i.e. below 200 DMA and closed near day low. There was immediate support around 11100 and nifty has respected this support for four days. The reason is that the U.S. market was recovering by 600/800 points in a day. Last Thursday, the market was recover due to weekly expiry but again drastic fall has happened on this Friday. On the last trading session, Nifty has opened a gap down at 10942 and closed in green. This closing is below two strong supports i.e. 11100 and trend line support around 11000. Now, these supports will work as resistance and it looks like sell on a rising market.

As per the chart, we are mildly bullish on the market. The reasons are too much fall, oversold RSI, and weekly channel cycle is completed. The next support is around 10700 and resistance is 11100.

Technical Analysis of Nifty Bank: Same situation in banknifty however, the positive thing is banknifty has closed exactly up to support i.e. around 27600. On Monday, if the market starts to recover then banknifty will show rapid moves in comparison of nifty. The 20 DMA is ready to break 200 DMA, sentiments are neutral to negative. Now we have to wait till Monday morning, it all depends on the news.

The next resistance is 28900 and support 27600. We are mildly bullish on banknifty.


















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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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