Last week was quite dramatic for NIFTY and we saw several ups and downs. Last week we had mentioned a support for NIFTY in 6000-6020 range. Though NIFTY maintained that support twice, it could not bounce off from that support level and we still maintain the same support level for NIFTY in the coming week too, i.e. 6000-6020. On the 15 min chart, NIFTY has formed a descending triangle. The support for the descending triangle is at 6010-6020 level. If NIFTY breaks below this then in the short term we can see a downward journey till 5900-5910.
Coming to the technical parameters, NIFTY is standing just above this support line and there is no strength in volume to get NIFTY either below this support or away from this support. So our advice is to wait and watch the NIFTY moves for couple of sessions to come.
There is RSI failure swing – top formation in the making. RSI failed to break above 70% level. If NIFTY continues in its bullish fashion either for short term or long term, RSI will trigger a sell signal directly or through the RSI failure swing – top. It would be interesting to watch this happen.
In the end, if NIFTY breaks below 6000-6020 level then we can see downward movement first till 5910 and then till 5775. Play safe.
First chart is NIFTY daily chart and second chart is NIFTY 15 minutes chart
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