After a long vacation, the week has begun with Nifty Dec series confirming the bullish engulfing pattern on weekly charts, by breaching the high of the prev. weeks candle of 5210, indicating a bull rally for the coming sessions. Momentum indicators RSI has given a positive divergence, MacdH and Stochastics in the positive terrain on weekly basis.
On the daily charts, MacdH is showing first sign of strength, suggesting a continuation of uptrend. RSI, stochastics already in the positive terrain.
However, on EOD Nifty has formed a Doji which suggests undecisiveness of the trend. Also, the price candle of Nifty Dec fut is above its 5 EMA, which is at 5136 approx. On intraday basis, Nifty is in the highly overbought region, suggesting that we may witmess a healthy correction in the coming session on intraday basis. I believe that Nifty should retrace back to its 5 EMA at 5136 once before continuing with the bull rally.
Below 5195, Nifty may test 5138 on intraday basis. On the upside, above 5215, Nifty may test 5246.
Trading in Nifty with a negative bias would be more comfortable after a series of bullish green candles seen in the prev week.
I rest my views... Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
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