IGI Logo

NIFTY IT 

Observation

* The NIFTY IT Index is quoting above 4 weeks High, while the bounce to the upside was preceded by a short fall of the prices to test lower level of 26600. This shows the improving undertone of the trend.

* Upon examining the broader picture of NIFTY IT, it appears that the price has shown a change in the polarity around the level of 26600, which illustrates rising bullish sentiment.

* The 20 Weeks SMA which was earlier acting as a variable resistance for the prices, now has started to act as a support for the prices.

* On the Daily Timeframe the Index had witnessed a breakout from a symmetrical triangle pattern this indicated a reversal to the upside.

* The relative strength index (RSI) is on the weekly timeframe has shown a range shift which reflects the rising momentum for potential uptrend.

Inference & Expectations

* Looking at the overall structure of the prices and the evidence supported by indicator we can infer that NIFTY IT is improving from its time correction.

* We expect the prices to go Higher till the level of 31220.

* Our Bullish view will be negated if we see prices sustaining below the level of 27500.

NIFTY CONSUMPTION

Observation

* Based on the analysis of the weekly chart for NIFTY Consumption, it appears that the index maintained to form lower lows and lower highs which was preceded by a strong uptrend from June to September 2022. This pattern may suggest a negative trend, as it indicates a shift from higher to lower price levels.

* The latest downfall in NIFTY Consumption index was preceded by retest till the neckline of Descending Triangle pattern. This points towards the continuation of trend in the direction of breakdown.

* The Index has sustained below 10 weeks EMA which confirms the downward move. The 10 weeks EMA has acted as variable support & Resistance to the prices.

* The relative strength index (RSI) is falling and has sustained well below the level of 50.

Inference & Expectations

* Looking at the overall structure of prices and the evidence provided by indicator we can infer that the NIFTY Consumption can maintain to show more correction.

* We expect the breakdown to drag the index lower till the level of 7050.

* Our Bearish view will be negated if we see prices sustaining above the 7880 level.

To Read Complete Report & Disclaimer Click Here

SEBI Registration number is INH000000081.

Please refer disclaimer at https://geplcapital.com/term-disclaimer

Above views are of the author and not of the website kindly read disclaimer