Published on 20/03/2017 4:04:15 PM | Source: GEPLCapital Ltd

The NIFTY now trades above all the three averages - GEPL

Posted in Market Outlook | #GEPLCapital Ltd #Market Outlook


NSE Nifty Spot 9160.05 Weekly UP BY 2.52%

Observations:

1. As on 17.3.2017, the long term moving averages stand as below: 50 DMA @ 8702, 100 DMA @ 8464, 200 DMA @ 8502. The NIFTY now trades above all the three averages, and the 100 DMA is now very close to a positive crossover above the 200 DMA.

2. The Nifty has given a breakout and closed at a All Time High level both on daily as well as weekly timeframes, ended with a good gains of 225.5 points or 2.52% on weekly as well as 6.35 points or 0.07% on daily to close at 9160.05.

3. The momentum indicator like RSI is showing an overbought situation on both daily @ 77 as well as on weekly @ 87 level.

4. The INDIA VIX, could not sustained and moved down levels from the earlier week, as it closed @ 11.85 vs 13.96, a week earlier.

 

Nifty Daily Chart

 

Inference & Expectations:

* On the daily chart, the index witnessed a Gap Up opening and managed to sustain at higher levels and also above the immediate resistance of 9000 which we have mentioned in earlier report.  Whereas on the higher time frame, the weekly charts, Index has confirmed the crucial two years consolidation breakout by closing above 9000 levels with real white body candle.

* The said breakout is witnessed with a Bullish Gap which adds relevance. Index on extrapolated scale show levels in between 9300-9500 on the higher side. While on the flip side the current consolidation zone marks the SUPPORT zone.

* In a way SELLING pressure would intensify only if the prices are brought DOWN back to the consolidation range.

* Levels to watch on the upside 9225/9265/9300 (Extrapolated).

* Levels to watch on the downside 9110/9040/8970. 

 

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