Nifty Forming Inverted H&S Pattern In The Daily Chart And Trading On The Verge Of

Nifty Forming Inverted H&S Pattern In The Daily Chart And Trading On The Verge Of

Vivek Bajaj  | Sep 14, 2019 13:33

The index gained strength in the second half of the trading session on Friday and ended marginally on a positive note this week; driven by hope of more steps from the government to boost growth. Nifty covered its previous day’s losses to close above 11050 and formed a bullish candle on daily as well as on weekly charts, indicating strength in the market.

Nifty Midcap and Small cap index witnessed Inverted Head & Shoulder breakout and the investors were leaning towards mid caps and small caps stocks in a four session trading week.

Nifty Mid Cap Index

Nifty Mid Cap Index

Nifty Small Cap Index

Nifty Small Cap Index

Hourly Technical

In the Hourly chart, Nifty bounced from the convergence of 38.2% Fib retracement, 50 and 100 hourly SMA. The index closed right below the upper line of the Symmetrical triangle pattern (11100) which is likely to act as a short term resistance.

Probable support in the near term comes at 10970 which is the convergence of 50, 100 and 200 Hourly SMA. Technical parameters look bullish as of now in the hourly chart as most technical parameters are trading in or very close to the overbought area.

Nifty Hourly Chart

Nifty Hourly Chart

Daily Technical

The index closed right below the daily resistance zone of 11085-11150 which is likely to act as a crucial resistance in the short term. The option chain of 13th September however showed bullish outlook where positions were being added on the put side along with shredding of Open Interest on the call side which suggest strength in the index.

As per the option chain analysis, highest build-up on the put side comes at 10900 and 11000 which is likely to act as a crucial support and highest build-up on the call side comes at 11100 and 11200 which is likely to act as a crucial resistance in the coming days. Moreover, the total Open Interest on the put side as on Friday stands at 13,325,325 as compared to 9,167,475 on the Call side suggesting strength as of now.

Nifty OI Data

Nifty OI Data

Nifty too forming Inverted Head & Shoulder in the daily chart where neckline breakout is above 11150. However another important resistance post breakout comes at 11205-11225 which is the convergence of 38.2% Fib retracement, 50 & 200 Day SMA; sustainable close above which may lead to confirmed breakout in the index. Technical parameters look neutral to bullish as of now in the daily chart.

Nifty Daily Chart

Nifty Daily Chart

Weekly Technical

In the weekly chart, Nifty consolidating in a narrow range in an Inside Bar pattern since last three weeks and breakout on the upside comes at 11147.

Probable resistance comes at 50 weekly MA at 11115 and probable support comes at 100 weekly MA at 10910 on a weekly closing basis. Technical parameters still haven’t turned bullish in the weekly chart yet due to consolidation since last six weeks.

Nifty Weekly Chart

Nifty Weekly Chart

Nifty Tech Table

You can also read the original report here.

Disclaimer: Elearnmarkets wants to inform you that this post/video is solely for educational purpose. We are not advising any trading or investment ideas. We want to add that the data/indicator/signals contained in this website/post/video are not necessarily real-time nor accurate. All CFDs/traded instruments (stocks, indexes, futures, commodities) and Forex prices are not provided by exchanges but rather by web-based charting platforms, and so prices/indicators may not be accurate and may differ from the actual market prices, meaning prices are indicative and not appropriate for trading or investing purposes. Therefore, Elearnmarkets doesn`t bear any responsibility for any trading losses you might incur as a result of using this data/ indicators/charting platform. This analysis is purely based on technical observations and not meant for investing with real money. Elearnmarkets does not have any position in the market. One can create a position in the market at his/her own risk.

Elearnmarkets or anyone involved with Elearnmarkets will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals/discussions contained within this website/post. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Vivek Bajaj

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AMIT DHINGRA
AMIT DHINGRA

16 sep shd fail  ... (Read More)

Sep 15, 2019 15:23 GMT· Reply
Up Yours
Up Yours

Mr. Bajaj, so if total put contracts are more than call contracts for September series, it means market is bullish from here?   ... (Read More)

Sep 15, 2019 04:41 GMT· 1 · Reply
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