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Sensex

Trend – The index continuous to make a series of higher highs and higher lows indicating primary trend is still on the bullish side after breaking out from a consolidation range.

Pattern – The index has made a big green candle at higher levels indicating bulls are clearly in charge.

Momentum – On the weekly chart, the RSI has reached at the highest level since 2020 indicating that the bullish momentum is quite strong.

Direction – The index is expected to trade in positive territory until it breaks 55000 on the downside.

Volatility – The weekly ATR has reached 1570 points which means that Sensex currently has a range of 1570 points for a given week. Although on the daily timeframe, it has remained flat throughout the month with few ups and downs indicating the trend in still intact. INDIAVIX (18.40) has rose around 26.74% which means volatility has increased slightly.

Market breadth – Sensex has been outperforming the BSE Midcap and BSE Smallcap index on the monthly timeframe indicating that the leaders are leading the markets. 453 stocks of BSE 500 index are above the 200-day SMA indicating the larger trend has been stable. The breadth has increased as compared to last month where 434 stocks were above the 200-day MA.

Our take – Sensex is hitting all time high indicating positive momentum across all the time frames. Though our bias still remains positive, we may see a play of sector rotation within this bull market and hence traders are advised to wait and watch for short term corrections to create fresh longs. From current levels, the short to medium term trend still remains intact and the bulls to continue their bullish command into the markets towards 60000-62000 levels. On the downside an immediate support is placed around 58500 levels however any violation of this support zone on closing basis may cause short term correction towards 58000-57000 levels.

CMP : 59126 (2.73%) Resistance : 60500-61000-62200 Support : 59000-58200-57000

Nifty 50

Trend – The index continuous to make a series of higher highs and higher lows indicating primary trend is still on the bullish side after breaking out from a consolidation range.

Pattern – The index has made a big green candle at higher levels indicating bulls are clearly in charge.

Momentum – On the weekly chart, the RSI has reached at the highest level since 2020 indicating that the bullish momentum is quite strong.

Direction – The index is expected to trade in positive territory until it breaks 16800 on the downside.

Volatility – The weekly ATR has reached 560 points which means that Nifty currently has a range of 560 points for a given week. Although on the daily timeframe, it has remained flat throughout the month with few ups and downs indicating the trend in still intact. INDIAVIX(18.40) has rose around 26.74% which means volatility has increased slightly.

Market breadth – Nifty has been outperforming the NSE Midcap and NSE Smallcap index on the monthly timeframe indicating that the leaders are leading the markets. 473 stocks of NSE 500 index are above the 200-day SMA indicating the larger trend has been stable. The breadth has increased as compared to last month where 444 stocks were above the 200-day MA.

Our take – Nifty is hitting all time high indicating positive momentum across all the time frames. Though our bias still remains positive, we may see a play of sector rotation within this bull market and hence traders are advised to wait and watch for short term corrections to create fresh longs. From current levels, the short to medium term trend still remains intact and the bulls to continue their bullish command into the markets towards 18000-18200-18500 levels. On the downside an immediate support is placed around 17500 levels however any violation of this support zone on closing basis may cause short term correction towards 17250-17000 levels.

CMP : 17618 (2.84%) Resistance : 17800-18000-18500 Support : 17600-17300-17150

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