Weekly Technical Outlook - NIFTY CPSE : 2700.75 weekly change (-0.15%) By GEPL Capital
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Bullish Sectoral Index
NIFTY CPSE : 2700.75 weekly change (-0.15%)
Observation
* On Mid-term charts Nifty CPSE is moving in a strong uptrend since March 2020.
* The index has been taking support and bouncing off the 20 week SMA (2434) since last 12 months.
* Recently the index broke out of an ascending triangle pattern and is sustaining at higher levels indicating strength with the breakout.
* The RSI indicator on weekly timeframe has also given a breakout and is sustaining above the 70 mark indicating bullish momentum.
Inference & Expectations
* On the long term charts like monthly the NIFTY CPSE has been maintaining higher top higher bottom formation.
* The price action on all the time frame charts suggests that there is a possibility of an upside from current levels.
* We expect that the prices can move higher towards 2883 (50% Fib extension) followed by 3050 levels (61.8% fib extension).
* Going ahead 2550 will act as a strong support for the index.
Bearish Sectoral Index
MEDIUM TERM VIEW NIFTY AUTO : 10698.30 weekly change (-1.80%)
Observation
* NIFTY AUTO is facing resistance at its 20 week SMA (10929).
* In the current week, the Index formed a bearish candle at its 61.8% Fibonacci retracement level (11914-9226).
* On the daily charts the index broke below the 200 Day SMA (10805) indicating bearish sentiment.
* RSI plotted on the weekly timeframe is facing resistance at the 50 mark and moving lower.
Inference & Expectations
* The NIFTY AUTO is facing a resistance after a pullback rally.
* The prices action and the technical parameters mentioned above point towards the possibility of short-term bearish momentum to continue.
* Going ahead we expect the prices to head lower towards the 10300 (Multiple Touch Points) and a break below which can take the Index to 9880 (Multiple Touch Points).
* On the flip side, if the prices break above 10930 levels our bearish view will be negated.
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