NIFTY: Support In Sight, Could Provide Momentary Relief

NIFTY Daily Chart Technical Analysis:

NIFTY had a big fall again on Friday, but there was strong buying near the close of the trading period which says that the bulls have not disappeared from the scene yet.

Close & CMP: 5512

Market Outlook:

• NIFTY is near its support area which lies in the 5350 - 5590 range.  As NIFTY is just above this range, the downfall could slow down in this week, at least momentarily.
• Overall though, things are still looking negative so after some sideways movement or small correction, we could see yet another decline.  Don't get bullish yet.
• NIFTY काफी गिर चुकी है लेकिन अब अपने सुप्पोर्ट रेंज के नजदीक है.  निफ्टी की सुप्पोर्ट रेंज 5350 - 5590 के बीच में है.  अब क्यूंकि निफ्टी इस रेंज के नजदीक है, तो गिरता हुआ भाव को कुछ देर तक राहत मिलनी चाहिए.  पर इसका यह मतलब नहीं है की निफ्टी ऊपर जाएगी.  अभी भी उसका रुख तो नीचे की तरफ ही दिख रहा है.  तो लॉन्ग पोसिशन अभी लेने से रुकें. 

Technical Indicators:

• Three Black Crows candlestick formation is visible on the NIFTY daily chart.  But the last day is not a shaven bottom, which shows increased activity from the bulls.
• There is a support range close by, so the price fall should slow down and even exhibit some upward movement.
• NIFTY is deeply undersold so this sideways could see some increased momentum. 
• The market force is quite high and the candlestick patterns, moving averages etc. are all showing an overall negative trend.

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NIFTY Daily Chart Technical Analysis