Nifty - Breached 15000 mark downside. Now what?
Some points need to watch carefully in coming few weeks.
Previous week data suggests:
RSI (weekly) - 71.43 (80 seems overbough zone)
Candle Pattern - A small engulfing (matter of concern)
MACD : Above its signal line (supporting a pull back in near term)
Pattern Analysis: Nifty deviated from its mean
Moving Average Daily: (20 Candles) 14758.00
Moving Average Daily (50 Candles) 14321.07
India VIX: 22.25 (Stable)
The weekly options data suggests that the Index may stay in a defined range of 15000-15300.
Any violation of 15000 will invite incremental weakness.
The NIFTY PCR across all expiries stays at a healthy 1.19. It would be extremely crucial for the markets to move past and stay above 15000 level.
Over the next week,
Resistance Level Points Levels 15300 and 15485
Supports Level Points: 14900 and 14750 levels.
NIFTY is likely to see some modest technical pullback in the initial week.
We reiterate staying extremely stock-specific and selective while approaching the markets as the broader non-confirmation of the market breadth continues to remain a concern.
Regards,
Neeraj Bhatia
Managing Director