The past week saw a continuation of the positive sentiments except a struggle as it crossed the previous peak. As expected the Nifty posted a new ATH. The Index made a strongly bullish candle. on weekly chart which is a positive sign. The previous high would act as a support for some time.
A few observations from the weekly charts are:
A few observations from the weekly charts are:
- The index moved in a range of 357 points viz. between 19890 and 20222
- The oscillators of different time frames are showing positive signals
- Option open interest to drive the direction of the market
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Expected scenarios for the ensuing week
- The Index broke the top of the descending channel on daily chart which helped the strong move. It made another break of ascending minor channel
- In the normal course when the prices reach the earlier trend there are possibilities of rejection. However, the Index has re-entered the earlier trend which is likely to set the probability of continuation of the uptrend higher as seen from the other indicators
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Additional interesting observations
- The outlook appears to be positive with the break of crucial barrier zone of 19880 – 19960
- Index may find supports at 20140, 20030, 19960 and the index could face resistances at multiple levels 20330,20440, 20540
- There has been a few Gaps created in this bull run
- 18818-18908 (28th Jun 23) far off for now
- 18972-19079 (29th July 23) far off for now
- 19189-19246 (3rd July 23) far off for now
- 20063-20133- Newly created
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Final Note
- The Index has stayed well above the long-term trend line and the 200 DMA at 18449 and 55 DMA around 19560
- In the weekly charts the Index has got get back to the original ascending channel after a struggle around 19850-880 which incidentally is the previous ATH
- The September series so far has proved to be positive with the Index recovering the entire losses made in August 23 and also posting a new ATH
- Expected to consolidate remain in the range of 19960-20440 and any close outside the range requires re-assessment of risk
- With continued momentum the Index has an opportunity to hit the Fib projection of 20535 in the near future. However, there are a few resistance zones around 20330-20440
- After three consecutive weeks of positive candles, It is prudent to remain vigilant as drag can be on both sides
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#Stay Safe
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.