Technical Analysis for Today`s Market ( 17 May 2021 ) is based on Market Trend of previous Trading Sessions.
After showing sharp weakness on Wednesday Nifty shifted into a consolidation on Friday and closed the day lower by 18 points. After opening on a positive note on Friday, the market shifted in to a narrow range movement with weak bias for the whole session. Minor intraday upside recovery attempt from the lows has failed to pull the market to stay into positive territory for long period.
A small negative candle was formed on the daily chart with lower shadow on Friday. This pattern was formed beside the long bear candle of Wednesday. This consolidation movement indicate a lack of selling enthusiasm in the market after a short weakness of few sessions. This pattern could eventually result in bulls to making comeback from the lower levels.
After the formation of higher low at 14416 on 3rd May, Nifty forming an intraday low of Friday at 14591 could be considered as a new higher bottom of the sequence. But, this higher bottom needs to be confirmed with upmove in the subsequent sessions (on Monday). Hence, a confirmation of this pattern could open another round of upside in the market and that could retest the resistance zone of around 14900-15000 levels in the near term.
Nifty on the weekly chart, formed a negative candle at the highs, which signal an inability of bulls to sustain the highs. After the upside breakout of down sloping trend line resistance in the previous week, Nifty has slipped into weakness on the weekly chart and is now placed at the previous upside breakout area of around 14650-14700 levels. The market is also above another support of weekly 10 period EMA around 14650 levels. Both of these action indicate a possibility of an upside bounce in the market from the lows in coming sessions.
Conclusion: The short term trend of Nifty is choppy with weak bias. The present market action signal chances of an upside bounce in the coming sessions. The confirmation of higher bottom at 14591 (Friday’s Low) is expected to pull the market on upside. The next upper levels to be watched around 14900-15000 in the next one week. Immediate support is placed at 14590.
Technical Analysis for Today`s Market by Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities at Kotak Securities
The last week has been volatile for the traders, the week started on a positive note but due to extremely uncertain global cues index shed over 370/ 1100 points or nearly 1 percent.
Among Sectors, after a robust rally metal stocks witnessed profit booking, in this week alone the Metal index corrected over 4.5 percent.
Whereas, some buying was seen in PSU Banks and selective FMCG stocks. Technically, on daily charts the market has formed a lower top kind of formation, but at the same time the Nifty is hovering near 20 and 50 day SMA with modest volume activity.
We are of the view that, the broader texture of the market is still in to the bullish but due to weak global market conditions market may consolidate in the range of 14500 -14800/48200 – 49200 in the near future 14590/48470 should act as a strong support level for traders below the same correction wave likely to continue up to 14500/48200. Further down side may also continue which could drag in the index up to 14390/47800. On the flip side, 14800/49200 should be the sacrosanct level for the bulls above the same uptrend wave likely to continue up to 14950-15100. /49750-50100
The Market Wrap-up by Mr. Sameet Chavan ( Chief Analyst – Technical and Derivatives, Angel Broking)
( not updated for 17 May)“Today morning the global set up was just ideal to have a gap up opening in the market and in fact, Nifty started the session slightly higher than what SGX Nifty was indicating. During the first half, index consolidated in a narrow range with no real momentum, but post the mid-session, we witnessed a good broad based participation to push the Nifty beyond 14700 on the weekly expiry session. Eventually, Nifty ended the session with over seven tenths of a percent gains.
Although, there was some sluggishness seen in the initial hours, market did not even challenged its first intraday support of 14550. In fact, 14600 acted as a sheet anchor and hence, there was sustained up move seen in the latter half to close inside the strong terrain.
The way intraday price chart is positioned, there is a high probability that we may surpass the crucial hurdle of 14730 at the opening itself tomorrow. After this, 14818 – 14850 – 14900 are the levels to watch out for. On the flipside, 14650 followed by 14600 should be treated as intraday supports.
The key indices are slowly and steadily moving northwards; but individual stocks are attracting lot of buying interest. One should continue with a stock specific approach because the real action lies there only and thematic ideas are providing a fabulous trading opportunity. One of the notable observations is the development in ‘NIFTY MIDCAP’ index. Today, it has managed to surpass the higher boundary of the cluster of resistance by a small margin. Couple of follow up moves in this basket would provide the real impetus for the next leg of the rally. So all eyes on it now.”
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