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Weekly Note on Market By Mr. Apurva Sheth, Head of Market Perspectives, Samco Securities.

The NIFTY50 on the daily chart is trading in a higher high higher bottom formation and the extended up move in the prices indicates a strong bullish trend.  In the recent minor throwback prices have taken support near its 21-day exponential moving average and an instant rebound was seen post that.

Now the rule of polarity will be applied in NIFTY where prior resistance will act as an immediate support for the market. The momentum oscillator RSI (14) on the daily chart has formed a bullish hidden divergence 55 -60 levels and post that index started to move higher with further strength.

On the technical ground, the support for the Index is placed near 18250 and any move below the same will extend the fall till 18100 levels. Similarly on the higher side 18650 will be the immediate resistance and followed by 18800 levels.

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