Technical View: Nifty forms a bullish inside candle pattern. Will it be able to surpass the 50-DMA level next week?
On the weekly charts, the 50-stock index has formed a bullish inside candle pattern and the 50-day moving average of 19,450 points is now acting as a formidable resistance for the index, according to Om Mehra, technical analyst, SAMCO Securities .
“The expected weekly trading range is between 19,000 and 19,550, but a decisive breakout in either direction could change the range-related trend,” he said.
Friday, the Nifty50 ended up 0.5% at 19,230.60 points. Market gains saw the India VIX volatility gauge calm down and close 1.7% lower at 10.8825 points.
The weekly options chart of the Nifty 50 suggests limited trading as the 19,300 call option and 19,200 put option hold the highest open interest.
Jay Thakkar, head – alternative research, Sharekhan by BNP Paribas
The Nifty closed in positive territory for the week, but it was unable to rise above its immediate resistance levels of 19333.60, with the highest hit this week being 19276.25.
This failure still leaves open the possibility that it is a wave 4 bounce, however, above 19333.60 it will negate the same and subsequently this bounce will be confirmed as a wave 4 bounce. the wave (X).
The Nifty 50 has retraced between 38.2% and 50% of its previous decline from 19849.75 to 18837.85, and it can retrace further to 19,400 levels till the 18973.70 level is maintained.
Om Mehra, Technical Analyst, SAMCO Securities
From a technical perspective, the weekly chart shows a bullish inside candle formation, with the weekly chart ROI at 51. On the daily chart, the 50-day moving average acts as formidable resistance at 19,450 for the Nifty 50.
When it comes to the options market, there is considerable interest in the 19,500 call strike price and the 19,000 put strike price.
The expected weekly trading range is between 19,000 and 19,550, but a decisive breakout in either direction could change the trend of the range.
Kunal Shah, Senior Technical and Derivatives Analyst, LKP Securities
After gap opening, Nifty 50 faced resistance around 19,250-19,300 levels, and we can see maximum sell writing at 19,200 levels, which can act as strong support for Nifty. We can see maximum open interest for the call option of 19,300, so one should only be bullish on Nifty if it closes above its crucial 100-day moving average, which is placed at 19,300.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
