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Daily Technical View on Nifty

Markets Likely to Extend Pullback

Nifty rose for the fifth consecutive session, to close at 16884. Nifty has soared more than 1200 points in last 5 trading session. Nifty managed to reclaim its level above its 20 and 200 days EMA, which are currently placed at 16725 and 16693 respectively.

Last week, Nifty formed bullish “Engulfing” pattern on the weekly charts and on the first session of the current week, the bullish implication of that pattern got activated, as Nifty surpassed last week’s high. This confirm the bullish trend reversal on the short term charts of Nifty.

Nifty has also surpassed the key resistance of 16800. For last two trading sessions, Nifty has been finding support on its 5 days EMA, which is currently placed at 16597.

Short term trend of the Nifty and Bank Nifty seems to have reversed on the upside and markets are expected to extend the current pullback. On the upside, Nifty has got resistance in the zone of 17050-17100, where 50 days EMA and Daily super indicator is placed.

RSI oscillator showed positive divergence and now has reached above the benchmark level of 50 on the Nifty daily charts. This indicates that there is good chance that Nifty would continue to rise further from current levels

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