Nifty - Fast move awaiting either side breaking 18194 or 18389 !!!
As we suggested in our previous technical journal that the above 18267, the upside is minimal in the prior week. The same happened and the Nifty 50 index weekly closing happened at 18314 on a weekly basis, so it is only 49 points upside from our estimated level.
Because there was no breakdown, below the level of 18042, so the bearish trade didn't activate for the entire previous week.
Overall the NIFTY 50 index moved in a 289.40 points range and ended towards its high point just below the key resistance levels. The benchmark index closed while posting net gains of 245.80 points (+1.36%) on a weekly basis.
Nifty 50 Index Monthly Chart
In the Nifty 50 Index Monthly Chart, candles respected the resistance level and still trying to break it to reach up to a present all-time high, or maybe (who knows), can give a good break-out from this level to create a new all-time high level in the future.
Status of Head of Shoulder on Nifty 50 Index weekly chart
We are following this technical formation of the Head and Shoulder pattern for quite some time, but the previous week's bullish green candle seems to make it null and void for the time being, because it has broken the height of the left shoulder which was the level of 18091. So this makes this pattern invalid now.
Nifty 50 Index - Weekly Chart
We can analyze that the Nifty Weekly Index has closed, this week, at the previous resistance levels, but as we can see previously 9 times, the Nifty weekly index has already tried to break it out on several occasions.
The monthly and weekly momentum of bullish candles forces us to think that this time the index is going to break this level decisively.
The level of 18500, is attempting to form and test a recent triple-top. Any move towards the 18500-18600 levels will see the NIFTY testing this level for the third time since October 2021.
A decisive and meaningful with full volumes of breakout may lend more strength to the Index, as of now, the level of 18500 is a very strong resistance for the Index.
This time most strong reason for the upside seems FIIs are buying in the cash market, by FIIs, the activity started in March 2023 and is still going on continuously.
Please find the daily FIIs cash buying data below:
Status of Nifty Fibonacci Chart on Weekly time frame:
As we can see now, the pattern has already crossed the resistance level, which we cautioned in our previous technical journal, and already started the journey toward its next level of 7.86%, which is sitting at 18456, in round figure, it could be 18500, which is again a round number and also another resistant level.
Nifty 50 Index Daily Chart