In the past week, the 50-share pack kicked off with 93 points gap up at 17953 level and consolidated within the boundaries of 18142 where the highest point was marked and 17761 which acted as the lowest point reached during the week. The final tally stood in favour of the bulls, as the index settled on a positive note gaining 97 points against the week before to settle at the 17956.60 level.
According to daily price charts, the index did breach below the crucial support seen at or around the 17770 level at one instance to mark a weekly bottom at 17761.65 but however managed to respect the same on a closing basis, which hints at the presence of strong buying action around the same region, and which shall also provide important support going forward.
Looking at the price pattern, the index has been making lower highs and almost identical lows in the past few sessions that resemble a “Descending Triangle” chart structure which is bearish in nature and once validated could lead to a continuation of the downtrend going forward. In addition to this, a bearish 21-55 Ema crossover has been recorded on the daily charts, the previous crossover was recorded in the month of July 2022 at 16250 levels after which the NIFTY50 rallied to attain a fresh peak at 18888 and the opposite of this could be a sign of worry in the near future.
On the weekly front, a formation of a “Doji” candlestick is clearly visible and such a formation comes into existence as and when the opening and the close are almost similar which represents indecision amongst the market participants at the current juncture. Since the index opened at 17952 and closed at 17956 gives no sign of direction at least for now.
Going forward, the trend remains bullish as the index settled above the 17770-750 zones, which keeps a bullish pattern of higher highs and lows intact at the current juncture. Unless we see a decisive break below the same the overall scenario remains bullish to sideways in the near term.
An event, where the index falls below 17750, could lead to another 200-250 points dip to visit its longer-term 200-Ema line now present at the 17508 level. On the flip side, if the index manages to cross above the 18150-18200 zones, then the gains could see an extension towards 18300 & 18500 thereafter.
According to daily price charts, the index did breach below the crucial support seen at or around the 17770 level at one instance to mark a weekly bottom at 17761.65 but however managed to respect the same on a closing basis, which hints at the presence of strong buying action around the same region, and which shall also provide important support going forward.
Looking at the price pattern, the index has been making lower highs and almost identical lows in the past few sessions that resemble a “Descending Triangle” chart structure which is bearish in nature and once validated could lead to a continuation of the downtrend going forward. In addition to this, a bearish 21-55 Ema crossover has been recorded on the daily charts, the previous crossover was recorded in the month of July 2022 at 16250 levels after which the NIFTY50 rallied to attain a fresh peak at 18888 and the opposite of this could be a sign of worry in the near future.
On the weekly front, a formation of a “Doji” candlestick is clearly visible and such a formation comes into existence as and when the opening and the close are almost similar which represents indecision amongst the market participants at the current juncture. Since the index opened at 17952 and closed at 17956 gives no sign of direction at least for now.
Going forward, the trend remains bullish as the index settled above the 17770-750 zones, which keeps a bullish pattern of higher highs and lows intact at the current juncture. Unless we see a decisive break below the same the overall scenario remains bullish to sideways in the near term.
An event, where the index falls below 17750, could lead to another 200-250 points dip to visit its longer-term 200-Ema line now present at the 17508 level. On the flip side, if the index manages to cross above the 18150-18200 zones, then the gains could see an extension towards 18300 & 18500 thereafter.