3273: Hot Stocks: Here’s why Tata Motors, Granules, & Tata Steel could give double digit returns
The Nifty has maintained its higher top higher bottom formation on the monthly charts and it has once again formed the same pattern on the weekly as well as on daily charts after the correction which has happened in the last 2 weeks. It shows a strong bullish undertone of the market for the medium to long term.
A couple of days back, we have seen that on the daily time frame, the Nifty has formed a change in polarity structure near the 14700 – 14500 range and bounced back sharply after bottoming out near these levels which indicates the 14700 – 14500 range will act as a crucial support zone in the future.
On the indicator front, the index remains above the long-term moving averages of 50 Day 100 Day and 200 Day SMA.
The RSI plotted on the medium and long term time frame can be seen rising that indicates that the medium and long term trend of the index remains bullish.
The key support levels to watch for in the short term are 15017 (20 Day SMA) and 14750 (previous swing high) followed by 14467 (Swing Low)
On the upside, the key resistance levels are 15431 (All-Time High), and if the index sustains above this level, we might see the Nifty50 heading higher towards 15910 (78.6% extension level of the rise from 13596-15431 projected form 14467) and eventually 16303 (100% extension level of the rise from 13596-15431 projected form 14467).
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