Weekly Special Report 08 June 2018

nifty capitalheight

Nifty closed the week on positive note gaining around 0.80%. As we have mentioned last week, that support for the index lies in the zone of 10500 to 10550 where Fibonacci levels and medium term moving averages are lying. If the index manages to close below these levels then the index can drift to the levels of 10300 to 10400 where long term moving averages and Fibonacci levels are lying. Last week, it ended 0.67 percent higher up with a Dragonfly Doji candle. This candle pattern on the weekly chart implies accumulation on dips. Also, double bottom formation around 10,550 levels is clearly visible. The broader chart pattern suggests the benchmark index is likely to challenge its upside resistance placed around 10,780 and 10,820 levels. Immediate critical support is placed around 10,700 levels. 30-day exponential moving average (EMA) on the daily chart is placed around 10,630, which may act as the second critical support. Broader chart patterns suggest the benchmark index is likely to challenge higher resistances placed around 10,780 and 10,840.

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