Nifty - Wide Range Consolidation from 17800 to 18490
As we suggested in our previous technical journal, the Nifty 50 Index was awaiting either side's move and it has been done in the same way.
The benchmark index moved higher from 18389 levels to 18458.90 levels, which was a move of very quickly 69 points, and then the market changed the swing downward and moved down from 18194 levels to 18060.40 levels, which ranged from 133 points, before weekly closing again only on 18203.40.
So the trading range between swing and forth in the previous week in the Nifty 50 index was 398 points, which is enough for an Options seller trader to grab quick earnings, both sides move.
The good point is Nifty resisted both side key levels in all of the previous week's sessions and the bad point is it closes with a net loss of 111.40 points which is (-0.61%) on a weekly basis.
Let us discuss what the Chart is suggesting to us for next week's trading opportunity
Nifty 50 Index Hourly Chart
In the Nifty 50 index hourly technical chart, is visible with both side's weekly movements in 5 trading day sessions, suggesting to us that maybe there are more sellers sitting on the upside than buyers on the lower side.
But the positive divergence on the hourly momentum indicator indicated the loss of momentum on the downside which in turn helped the up move.
Somehow, if the market breakdown ranges from 18040 to 17800 levels, then it can slip into a time and price consolidation zone for the mid-term, which could take a little longer time to recover than expected.
Nifty 50 Index Daily Chart
Till the daily chart is within the channel, it will protect the range of 18042, breaking down Below this level 18000 will not take long to break down and can drift 200 SMA immediately, which is sitting on 17800 levels at present.
Status of Nifty Fibonacci Chart on Weekly time frame:
As the chart suggested that it has already touched 7.86%, (as we discussed in our previous technical journal), in the previous week's trading session and got a strong rejection from the 18458.90 level. Now it seems difficult to move higher toward 1% levels without any meaningful correction or any boost up data flow.
Nifty 50 Index Weekly Chart
As we discussed previously, this resistance level has already tried to break out 9 times previously, with no success. This time also the market is hovering around this level, and weekly closed with a Dozi candle, which is called an indecisive candle.
Most probably, there could be a chance if Nifty Bank Index will show strong upside momentum, the Nifty index can also follow up and be able to break out.
In the previous week, the Bank Nifty Index was rather stronger than the Nifty Index. Let us see, can we get a green candle this week, or will get a follow-up bearish red candle to move further down one again without breaking this resistance level?
Nifty 50 Index Monthly Chart
As we discussed last technical journal, the Nifty 50 monthly index is still in the positive zone and helping the index to maintain upward momentum. The coming week is the last week before the monthly expiry, let us see if the index is able to maintain the close above the previous month's high, which is sitting on 18089 levels.
FIIs Daily Activities
Below is the FII data, which shows, for a whole week, FIIs are on buying spree and DIIs are busy booking profits. Maybe they are expecting redemption pressure, anytime soon, if the market tries to drift below 18000 levels. SIP's inflow is decreasing slowly. but it is still paying more than bank fixed deposits as of now.
Foreign institutional investors (FIIs) bought equities worth Rs 4098.2 crore this week, while domestic institutional investors (DIIs) sold equities worth Rs 677.45 crore.
However, in the month till now, FII purchased equities worth Rs 17,376.31 crore, and DII sold equities worth Rs 4,674.68 crore.