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Nifty 50 -Struggling to maintain staying up Weekly SMA

The previous week was a four-day week including one trading holiday on account of Dussehra; the NIFTY moved in a 573.25 range before ending the week on a positive note, a weekly gain of 220.30 points (+1.29%)

The million Dollar Question is, who is trying to maintain the Nifty 50 index above 50 DMA when FIIs and DIIs are not bullish (One can see in the below weekly data sheet), DIIs are hedging their position with a massive number of Puts buying.

Is it retail, who is buying in the cash Market? They are probably busy averaging their positions, without thinking that we should not pick up the falling knife.

Nifty 50 Monthly Index chart:

The nifty 50 Monthly Index chart is showing that as predicted, still the headline index is struggling to cross the previous month's high. this week. The nifty 50 index is able to keep the upside, the previous month is below so far. But this is for sure that 16850 is now a major support area, and breaking down this point, we can see a drag down Nifty 50 at 16500 and then 16200 drastically.

Nifty 50 Weekly Index Chart:

The nifty 50 weekly index chart is able to close peer-to-peer 50 DMA, but it is trying to drag the candles from the lower channel, Even though we can see we are below side of the middle of the channel and the smart money is not trying to support the market. they are either sideways or trying to find the opportunity to sell in a rising market.

Nifty 50 Daily Index Chart

The daily index chart of Nifty 50, is also proving the above facts intact. We closed below 50 DMA and it seems 50DMA will become a resistance zone if the Nifty 50 will not be able to cross it soon, in this week's duration.

For Week 10th October -14th October-2022

The weekly charts make the zone of 16850-17100 a strong support zone for the Nifty 50 Index. So long as this zone stays defended, all that the markets would ever see would be just corrective turbulence but no major breakdown on the charts.

Only if the 16850 levels stand violated, we will need to take that technical development rather seriously.

This week a lot of events are lined up, so keep positions light and ready for great volatility.

Gold is already started brightening upward and as well as silver is going to start climbing up, especially for Indian traders.

Crude can again move upwards, as the events are indicating for production cut decision, which would directly proportionate to inflation.

Thanks for reading

Happy Trading

Keep Investing

Best Regards,

Neeraj Bhatia

Managing Director

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