Pattern analysis reveals a interesting picture. The NIFTY has validated the support of 50-DMA at Close levels and has move past 100-DMA as well. It halted at its short term 20-DMA but in Thursday’s session, it has not only moved past its short term 20-DMA but has moved past the multiple pattern resistance zones of 10600-10650 levels.
Overall, for the immediate short term, we can fairly expect the NIFTY to continue with its up move and we expect NIFTY to test its upper band of 10860-10890 zones. However, this is not likely to happen without any minor corrective retracements. Though the NIFTY shall overcome this, the zones of 10860-10890 will still remain a formidable resistance on the long term charts. We recommend making select purchases and riding the momentum. However, we also recommend maintaining high levels of vigilance at higher levels. Each up move shall protecting existing profits more important in coming days.
Milan Vaishnav, CMT, MSTA
(Research Analyst, SEBI Reg. No. INH000003341)
Member: CMT Association (Formerly known as Market Technicians Association, (MTA), USA Canadian Society of Technical Analysts, (CSTA), CANADA
Society of Technical Analysts (STA), UK
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