8:44 AM
Unknown
On Friday, indices registered a Weekly low of 17096 / 5142
and closed marginally above the lower level (17165 / 5165)
of the trading range.
Therefore, going forward, this level may act as an important
support. On Wednesday, we observed a negative crossover in
"RSI - Smoothened" oscillator and this crossover is still intact.
In
addition, the Daily chart depicts a negative crossover in "ADX
(9)" indicator, which implies that if indices sustain below Friday's
low of 17096 / 5142, then a further fall is expected. In this
case, indices may test crucial support levels of 16900 - 16669/
5085 - 5011. On the other hand, the Daily chart exhibits
Japanese candlestick patterns such as "Long Legged Doji" in
Sensex and "Spinning Top" in Nifty. Both patterns indicate
uncertainty prevailing at current levels and both patterns need
further confirmatory signals. These patterns will be confirmed
ONLY if the indices cross and close above the 17279 / 5199
mark. In such a scenario, indices may rally towards
17400 - 17570 / 5240 - 5285 levels. On the upside,
17700 / 5326 level remains to be a strong resistance.
A sustainable move above this may push indices to test
18000 - 18100 / 5400 -
5450 levels.