Nifty - Precariously Placed

Nifty - Precariously Placed

Ritesh Victor
25 Jul 2019 07:15 PM
Nifty’s continuous decline (6% plunge since the Union Budget and 6 consecutive negative days, including today) - has taken a lot of people by surprise (ones’ who were overtly bullish on the union budget and some others “mutual funds sahi hain” who felt Indian Equities can never fall). As Nifty scaled fresh peaks, my sense was on the cautious side. Technically, there is a double top formation (a crooked kind) on the daily chart – the two peaks are at 11856 (18-Apr-2019) and 12103 (3-Jun-2019). The neckline of the double top is at 11108 (notice the blue horizontal line). 14-day RSI is oversold at 21 while the MACD is in the oversold territory. Momentum indicators are predominantly oversold. There is a small divergence in the MACD Forest. There are trend line/neckline supports around the 11000-11100 region.

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