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NIFTY IT: 36332 weekly change (2.82%)

Observation

* NIFTY IT INDEX on the monthly time frame can be seen forming a higher high higher low pattern ever since it tested the low of 10991 in the month of March 2020.

* For the past couple of week the index has been in a range bound territory after testing the life time high of 37823 in the month of September 2021.

* On the weekly chart we have shown the Bollinger bands, wherein we can see that the prices have remained above the 20 Week SMA Since June 2020, and have been moving between the upper band and the 20 Week SMA.

* The RSI plotted on the weekly time can be seen placed above the 50 Mark since May 2020, currently it can be seen moving higher towards the higher level after forming a bullish hinge near the 60 mark, indicating presence of bullish momentum in the prices.

* Going ahead the 37823 (Life Time high) will act as a key resistance level. If the prices breach above this level, we might see the prices move higher towards the 39607 mark (38.2% extension level of the rise from 24212– 37823 projected from 34288).

* The 34288 (3 Week Low) will act as a key support level, if the prices breach below the 34288 mark we might see the price move lower towards the 33496 (20 Week SMA)

Inference & Expectations

* Since the past 2 weeks the NIFTY IT index has been forming a higher high higher low pattern after a shallow correction of the previous up move.

* The price action on short and the medium term charts suggests that the prices are currently moving higher after a correction.

* The technical parameters mentioned above point towards the possibility of increasing bullish momentum.

* Going Ahead we expect the bullish momentum to take the prices higher towards the 37823 mark, if the prices breach above 37829 mark we might see the prices move higher towards 39607 levels.

* The RED FLAG level to watch for the index in the sessions is 34288, if the prices breach below this level can say that the correction is likely to continue and we might see the prices move lower 33496 mark.

NIFTY ENERGY: 24209 weekly change (2.65%)

Observation

* On the monthly time frame, the NIFTY ENERGY index has been forming a higher high higher low pattern, indicating that the bulls are in control of the long term trend.

* On the weekly time frame, the prices have been moving between the 20 Week SMA and the upper Bollinger bands, the bands too can be seen showing signs of expanding volatility as the prices move higher.

* The NIFTY ENERGY index has been forming a higher high higher low pattern for the past 2 weeks after a shallow correction.

* On the indicator front, the RSI plotted on the weekly time frame moved above the 50 mark in the month of May 2020, and has managed to sustain above the same ever since, Currently it can be seen moving higher level, indicating increasing bullish momentum in the prices.

* Going ahead 25343 (Life Time high and also 38.2% extension level of the rise from 18803– 25343 projected from 22974) will act as a resistance level, if the prices breach above the 25343 mark, we might see the prices move higher towards the 26244 (50% extension level of the rise from 18803– 25343 projected from 22974)

* The 3 week low of 22974 will act as a key support level, if the prices breach below this level, we might see the prices move lower towards 21432 (20 Week SMA).

Inference & Expectations

* NIFTY ENERGY from a long term point of view seems to be in a strong bullish trend.

* The price action and the technical parameters on the short and the medium term time frame, shows the possibility increasing bullish momentum in the prices.

* Going ahead the key resistance level is placed at 25343. if the prices breach above this level, the bullishness will accelerate and take the prices higher towards the 26244 mark.

* The above analysis will stand negated if the prices breach below the 22974 mark, we might see the prices move lower towards 21432 mark.

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