DAILY TECHINICAL ANALYSIS

 

Nifty – Incremental Rally, Intermittent profit taking. 

Nifty, one more day one more high. Despite the hanging man pattern, it demanded for confirmation and bulls did it in style to stamp any chances of down move. Yesterday`s moves are even classical. However, the internal struggle at higher levels. Profit taking in the last hours of each day suggests there is rotation and profit taking which is visible. The Mid-caps did print red yesterday. Extending the logic of stronger up move in the beginning and profit taking at the end, today is the last day of the month. Also, important data releases, Powell speech are the one`s market would look, though both post our markets. Plus, the GDP numbers. here as well as in US worth the watch. With crude oil staying at lower for long, the sheen of higher inflation looks not the priority rather the growth impulse. Any shift from FED speech from inflation to growth would be watched. For the day, the new base is 17540, supply 17680-17740 (Very strong). 17530-17700 range should help. With slight bias to sell any rally towards 17700.

Niftybank:- No Rush to the bank

Nifty bank, showing signs of exhaustion, rallied decently with incremental highs printing. However, the last couple of days action lacks the momentum and strength to move further in roads. The regression line remained below the Mid of the channel. Short term frames posing double top pattern. Parabolic curve, posing umbrella bend suggesting profit taking at higher area than a direct move up. 42500-43500 range remains the themes. Sell 43300 stops 43550 for 42950 looks better option. Ahead of crucial data both local and global, Powell speech and next week our MPC remains the perfect launch pad to take profit before the event.  Supports 42900-42780-42500 supply 43180-43330-43500. Direct break below 42900 might push for deeper corrective move down.

 

@sribhashyam65 – Trading View – sreebhashyam 

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