NIFTY ANALYSIS
NIFTY on 30-03-2022
Supported by Global Cues and reduced Prices of Crude Oil NIFTY began the session with Gap Up and Profit booking observed as soon as the market opened.
NIFTY took support near its first support level i.e. 17360 and bounced back to continue its northward journey towards 17500.
BANK and AUTO emerged to be the greatest contributors with +1.36% and +1.21% while profit booking was observed in METAL (-2.17%).
NIFTY closed at 17498.25 after making a day high of 17522.50.
Technical View:
NIFTY has made a hanging-man like candle on Daily chart which is a reversal signal .
NIFTY is making Higher High Higher Lows formation.
NIFTY is moving above EMA 13, 21 and 34 which reflects the short-term trend is Upward.
RSI at 60 reflects the index is in bullish momentum.
There is positive cross-over in DMI which signals the NIFTY may continue its northward journey.
Support and Resistance: DAILY CHART
The gap between yesterday’s high and todays low will act as Strong Support for NIFTY i.e. 17387-17235.
On higher side 17525-17625 will act as resistance.
If this level is crossed and sustained NIFTY will march towards 17775.
View for Traders:
The signals coming from technical indicators are mixed as RSI, DMI and EMA signal the strength and intact uptrend while on the other hand the candle formed at the end of the day tells a different story.
Under such circumstances it becomes difficult to conclude and present the most appropriate strategy to be adopted by trader.
However, analysing the current situation under following heads may offer us some substantial conclusion:
1. Russia-Ukraine News
Though Russia has announced to withdraw its forces from Kyiv many Strategic Experts are of the view that this is a strategical step by Russia. Hence, the impact of the News is NEUTRAL.
2. Crude Oil Price
The price of Crude Oil has increased. Hence the Impact is NEGATIVE.
3. The buying by FIIs
The Net buying is ₹1357.47 Cr. Hence, the impact is POSITIVE.
4. Technical Parameters
Indicators are showing the Probability of further gains while formation of Hanging Man candle signals reversal. Hence the impact is “ NEUTRAL”.
5. Global Markets
DJI and S&P 500 both are down -0.41% and 0.75% at the time of writing this blog. Hence, the impact is NEGATIVE.
Hence, there are 2 Neutral, 2 Negative and 1 Positive factors.
Summing these all up it is recommended to buy NIFTY at its crucial support level i.e. 17250-225 for a target of 17360 and 17444 with SL of 17150.
Supported by Global Cues and reduced Prices of Crude Oil NIFTY began the session with Gap Up and Profit booking observed as soon as the market opened.
NIFTY took support near its first support level i.e. 17360 and bounced back to continue its northward journey towards 17500.
BANK and AUTO emerged to be the greatest contributors with +1.36% and +1.21% while profit booking was observed in METAL (-2.17%).
NIFTY closed at 17498.25 after making a day high of 17522.50.
Technical View:
NIFTY has made a hanging-man like candle on Daily chart which is a reversal signal .
NIFTY is making Higher High Higher Lows formation.
NIFTY is moving above EMA 13, 21 and 34 which reflects the short-term trend is Upward.
RSI at 60 reflects the index is in bullish momentum.
There is positive cross-over in DMI which signals the NIFTY may continue its northward journey.
Support and Resistance: DAILY CHART
The gap between yesterday’s high and todays low will act as Strong Support for NIFTY i.e. 17387-17235.
On higher side 17525-17625 will act as resistance.
If this level is crossed and sustained NIFTY will march towards 17775.
View for Traders:
The signals coming from technical indicators are mixed as RSI, DMI and EMA signal the strength and intact uptrend while on the other hand the candle formed at the end of the day tells a different story.
Under such circumstances it becomes difficult to conclude and present the most appropriate strategy to be adopted by trader.
However, analysing the current situation under following heads may offer us some substantial conclusion:
1. Russia-Ukraine News
Though Russia has announced to withdraw its forces from Kyiv many Strategic Experts are of the view that this is a strategical step by Russia. Hence, the impact of the News is NEUTRAL.
2. Crude Oil Price
The price of Crude Oil has increased. Hence the Impact is NEGATIVE.
3. The buying by FIIs
The Net buying is ₹1357.47 Cr. Hence, the impact is POSITIVE.
4. Technical Parameters
Indicators are showing the Probability of further gains while formation of Hanging Man candle signals reversal. Hence the impact is “ NEUTRAL”.
5. Global Markets
DJI and S&P 500 both are down -0.41% and 0.75% at the time of writing this blog. Hence, the impact is NEGATIVE.
Hence, there are 2 Neutral, 2 Negative and 1 Positive factors.
Summing these all up it is recommended to buy NIFTY at its crucial support level i.e. 17250-225 for a target of 17360 and 17444 with SL of 17150.
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