Nifty Analysis Week ended 10 May 2019

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Nifty Analysis Week ended 10 May 2019

Hello Friends,

This is my first and newly started blog especially for Nifty 50 Index analysis.
I will be posting Technical analysis of Nifty 50 Index.


Weekly Chart Analysis:

This is high volatility period for Indian Markets as we have important political events, yes.. Election outcome.

We can clearly see, that nifty is not able to sustain above resistance levels & during last week there was a sharp fall. There was huge selling pressure throughout the week.
In the below chart, I have 50 period moving average which had given good support / resistance in the past.



Daily Chart Analysis:


  • On the daily chart, RSI had given early indication of weakness in the up move by showing negative divergence.
  • Overall fall has retraced between 38.2% and 50% Fibonacci levels.
  • Prices have already fallen 5 % from high of 11856 to 11251




For next trading sessions, its interesting to see if Nifty takes support around demand zone (marked with a rectangle in above daily chart) or around 100 DMA (11124) or  near Fibonacci Level 61.8% (11070)

Option Data indicates 11200 and 11000 as important support levels to look at, as max Open Interest is at 11000 Put (1,190,025) and 11200 Put (1,149,000).

Conclusion:
High volatility to continue.
Pull back is possible as RSI on intraday time frame is around oversold levels.
Keep close watch on global news / events and indices movements.
If the demand zone is broken on the downside we may see further selling pressure towards mentioned support levels.



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Disclaimer: I am not SEBI Registered analyst. All above analysis are just for study purpose. 
I am not responsible for any gain or loss arising out of trades taken based on the study shared above.
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Comments

  1. Unknown12 May 2019 at 10:33

    Excellent analysis 😀

    ReplyDelete
  2. Purva13 May 2019 at 09:21

    Very well started, Amit! Keep it up! :)

    ReplyDelete
  3. Nayana13 May 2019 at 21:29

    That is very good analysis, Amit , keep it up.
    And
    simple to understand technical analysis!!

    ReplyDelete
  4. Abhijeet16 May 2019 at 21:31

    Great work.
    Best wishes

    ReplyDelete

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