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Sensex

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

Pattern – The index has made a big dragonfly doji at higher levels indicating bulls are loosing their bullish momentum. Although, a confirmation of the same is required for the pattern to get confirmed

Momentum – On the w eekly 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 dow nside.

Volatility – The w eekly ATR has reached 1270 points w hich means that Sensex currently has a range of 1270 points for a given w eek. Although on the daily timeframe, it has remained flat throughout the month w ith few ups and dow ns indicating the trend in still intact. INDIAVIX (17.40) has rose around 5.31% 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. 353 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 w here 453 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 w ithin this bull market and hence traders are advised to w ait 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 tow ards 61000-63000 levels. On the dow nside an immediate support is placed around 58500 levels how ever any violation of this support zone on closing basis may cause short term correction tow ards 58000-57000 levels.

CMP : 59771 (0.31%) Resistance : 60500-61000-62200 Support : 59000-58200-57000

Nifty 50

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

Pattern – The index has made a big dragonfly doji at higher levels indicating bulls are loosing their bullish momentum. Although, a confirmation of the same is required for the pattern to get confirmed

Momentum – On the w eekly 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 17500 on the dow nside.

Volatility – The w eekly ATR has reached 460 points w hich means that Nifty currently has a range of 460 points for a given week. Although on the daily timeframe, it has remained flat throughout the month w ith few ups and dow ns indicating the trend in still intact.

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. 373 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 w here 473 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 w ithin this bull market and hence traders are advised to w ait 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 tow ards 18000-18200-18500 levels. On the dow nside an immediate support is placed around 17500 levels how ever any violation of this support zone on closing basis may cause short term correction tow ards 17250-17000 levels.

CMP : 17921 (0.30%) Resistance : 18000-18200-18500 Support : 17800-17400-17000

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