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Sensex

Trend – The index has witness profit booking after continuously making a series of higher highs and higher lows indicating primary trend is still on the bullish side and w e must used this profit booking as a buying opportunity.

Pattern – The index has made a big red candle and has closed below the lows of previous two months violating important supports near 57300 levels indicating bulls are loosing their bullish momentum.

Momentum – On the w eekly chart, RSI has reached 50 levels indicating cooling of momentum at higher levels.

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

Volatility – The w eekly ATR has reached 1700 points which means that Sensex currently has a range of 1700 points for a given w eek. Although on the daily timeframe, it has remained flat throughout the month with few ups and downs indicating the trend in still intact. INDIAVIX (21.16) has rose around 21.48% w hich 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. 303 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 353 stocks w ere 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, w e 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 60000-63000 levels. On the downside an immediate support is placed around 55000 levels how ever any violation of this support zone on closing basis may cause short term correction towards 53000-52000 levels.

CMP : 57064 (-3.78%) Resistance : 58000-59000-60000 Support : 56000-55000-54000

Nifty 50​​​​​​​

Trend – The index has witness profit booking after continuously making a series of higher highs and higher lows indicating primary trend is still on the bullish side and w e must used this profit booking as a buying opportunity.

Pattern – The index has made a big red candle and has closed below the lows of previous two months violating important supports near 17000 levels indicating bulls are loosing their bullish momentum.

Momentum – On the w eekly chart, RSI has reached 50 levels indicating cooling of momentum at higher levels.

Direction – The index is expected to trade in positive territory until it breaks 16500 on the dow nside.

Volatility – The w eekly ATR has reached 502 points which means that Nifty currently has a range of 502 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 (21.16) has rose around 21.48% w hich 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. 306 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 353 stocks w ere 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, w e 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 17500-17800 levels. On the downside an immediate support is placed around 16700 levels how ever any violation of this support zone on closing basis may cause short term correction towards 16500-16200 levels.

CMP : 16983 (-3.90%) Resistance : 17500-18000-18500 Support : 16500-16000-15500

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