ITS ALMOST LONG TIME FROM WHEN WE ARE INFORMING THAT TWO MAJOR INDIAN INDICES ARE MAKING INTER DIVERGENCES, WHERE AS NIFTY ABLE TO MADE NEW HIGH BUT BANK NIFTY WAS NOT ABLE TO MAKE ANY HIGH’S IN RECENT PAST, AND WITH THIS INDICATION WE SAID THAT IN COMING DAYS, BANK NIFTY WILL PERFORM MORE THAT NIFTY, AS JUST SEE WHAT HAPPEN IN LAST SESSION AS WELL AS IN LAST TWO WEEK, ALL BANKING STOCK WITH BANK NIFTY ABLE TO OUT PERFORM THAT NIFTY INDEX.
AS WE ALL KNOW, THAT IN COMING WEEK MAJOR POLITICAL CHANGES ARE GOING TO HAPPEN AND IT WILL STRAIGHT FORWARD AFFECT ON STOCK MARKET MOVES.
IF YOU ALL REMEMBER, WE ARE SAYING THAT ON MONTHLY CHART NIFTY HAS GIVEN A “ASCENDING TRIANGLE” BREAKOUT AND UP MOVE WE CAN EXPECT TILL 8200-10500 LEVEL AS PER TRIANGLE RANGE. BUT 6600 SUPPORT SHOULD BE COUNT ON THIS VIEW, SO NOW ITS IMPORTANT TIME TO SEE THE FURTHER PATTERN DEVELOPMENT WITH THE UPCOMING NEWS, ONE MORE IMPORTANT POINT IS, LAST MONTH NIFTY GIVEN A “DOJI” CANDLE ON MONTHLY CHART WHICH WAS ALSO SUSPECTING “EVENING STAR” DEVELOPMENT BUT BY THE MAKING NEW TOP IN LAST SESSION, NIFTY AVOIDED THIS BEARISH FORMATION’S POSSIBILITIES AS OF NOW.
If you remember last week we clearly mention that nifty is having a major support in a range of 6650-6600 range, even we mention that it made triple bottom near to 6650 level and same bottom was tested again in last week and after that market given a sharp rise. We even mention that if support is taken near to this level then we can expect a up move till 6900-7050 level and it able to made almost near to 6900 level.
In last session market able made fresh life time high at 6872 almost and able to give close near to the top level only.
As per current chart development we can see that, at important support level it has given “INSIDE BAR” candle inform of a “DOJI” candle in last to last session and in last session it given a “BIG BULLISH CANDLE” which able to form “MORNING STAR” pattern on chart.
With the rsi development we can see that market taken support at equal levels, but rsi started to fall in recent past, which is the indication of “BULLISH DIVERGENCE” on chart.
Now with the chart formation current week seems to be highly important with the upcoming political event in a market, and even chart showing some important development at present time.
Now we see that at important level nifty given a four bottom and given a sharp bounce, but now upper side it has made a double top now, so if good up move is coming in a market then this double top should be broken in next 1-3 session and should able to give green candle above this top level.
So as per the chart formation we can say that if nifty able to cross 6900 and able to close above this level then we can see 7000-7100 level in coming days, but if any red candle near to this resistance can give some bearish formation signal’s and which can even lead into fall till 5800-5700 level also.
So as per our view fresh position should be build up if market able to move above and close above 6900 level only. If it facing resistance then again wait for downside support level of 6800-6700 levels.