Are Bulls taking charge of Bears? | Stock Market Analysis


On Friday NIFTY closes 182.40 points up and 1.27% above the previous closing price. This raises the question:

Are bears losing their grip or on Friday we saw a small correction?

On Friday market opens on a positive side with 127-point gains and then closes after gaining 181 points. In the early hours of the market, NIFTY was sideways and traded in a range, after that it marked a high of 248 points.

What does the chart show for Upcoming Weeks?

For upcoming weeks, we might see NIFTY trading in the range of 14252 to 14624. These levels will act as support and resistance for NIFTY.

If NIFTY breaks the supports then NIFTY probably go all the way up to 14000, which is a lower base of the channel. On the upper side, if NIFTY breaks its major support at 14624 then the NIFTY might travel all the way up to 14900 to 14950 which will act as major resistance for NIFTY.

Candlestick Patterns

NIFTY forms a DOJI on the daily time frame, the occurrence of DOJI after such a downfall shows reversal and indicates buying opportunity.

India VIX

Currently, INDIA VIX is at 20.6500. Decreasing INDIA VIX shows decreasing volatility from the market but the average range of INDIA VIX is 15-16 which currently high from its average range.

Indicator Analysis

MACD: MACD signal line is over the MACD line which shows the bearishness in the market, but decreasing histograms show the decreasing momentum on the downside and indicate bullishness. Currently, the signal line is at -6 and the fast line is at -80 if the MACD line crosses above the signal line above 0 in the positive territory then the market can move to the 15000 levels in the upcoming trading session.

RSI:  Currently RSI is at 43.59 and reverses from its support level at 36. A V-shape recovery can be seen in RSI, as RSI is reversing from its oversold region.

ATR: AVERAGE TRUE RANGE of NIFTY is currently at 248 which is slightly higher than its normal range which is at 150.

Option Chain Analysis

According to the option chain, we can see heavy call writing at 14600,14800 and 15000 level which shows that NIFTY will face lots of hurdle in going up and the major call writing is 15000 which shows a major resistance at the 15000 levels. On the downside we can see heavy put writing at 14300, 14200 level and the major put writing is at 14000 which show 14000 will act as major support for NIFTY if nifty breaks 14300 and 14200 levels.

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