DAILY TECHINICAL ANALYSIS

Date 24th   Nov 2022

Nifty – Slowing is not descend? 

Nifty, the much-awaited FOMC Minutes of the meeting is out. The broad agreement inflation deceleration not enough, slowing of rate hike path is appropriate sent calm to the markets. Dollar takes dive after hitting the technical resistance. Yields fall (bonds rise) in an otherwise calm and positive moves. All set for December rally in store. There appears nothing to stop the financial markets to continue what they have been doing in the last two months. Higher rates are not necessarily equity negative and that appears to be the theme now. Nifty finds support around the 18150-200 area and thus the moves going forward are crucial. There is bearish engulfing pattern recently coming around the first ATH. That can be short term hurdle (part of the corrective moves towards the trendline base). Here again, the recent slowing of the nifty moves, though sends some concerns of the sharp up-move, still holding on the index basis. Internals though looks sluggish; it can be part of the rotation process. Near term 18330 caps, an hourly close there helps to calm the downside nerves. (Potential intra-day Inv Head and Shoulder).  Broader market is not in a hurry to break either. 18100-18500 larger range. Shorter range 18200-400.

Niftybank:- Expiry Hurdle

Nifty, bulls open with gap, produce one more star in the last three days. Short- frames suggest a shooting star if not a grave stone doji. All in all it can be part of the expiry hurdle process. Base moves higher 42200 as long as that holds ascent is on the cards. Cues are positive encouraging, in an otherwise strong sector of recent times. With dollar on the mend, rates on the hold, the only point is the slowing down of the growth. The latest to join is the Goldman Sachs cutting to below 6%. Despite this the relative comparison favours the market and within the market healthy banking sector which is leading the growth engine. Today being the expiry, mostly the markets would stick to 42500-43000 range. A close below 42500 on hourly basis can be first caution to unwind some weight. Else it is slow and steady climb. Ranges should work before next leg higher.

@sribhashyam65 – Trading View – sreebhashyam 

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