Nifty at 5535 ?

Nifty Jan fut has made a small doji on the EOD charts, the range reducing down to just about 30 pts.

Stochastics has given a positive divergence, and RSI seems like trending upwards, though slightly in the OB zone, MacdH is still showing some lingering sign of weakness.

Although Nifty has confirmed a swing low, by breaching the high of 5248 it made yest., pointing twds a positive trend, what worries me is the EOD chart of Bank Nifty.

On Bank Nifty daily chart, its 5 and 20 EMA have given a negative divergence, MacdH showing the first and strongest sign of weakness, and RSI and Stochastics giving no clue of trend reversal (from negative to positive)

To support, 2 major bank stocks Sbi, and Boi both looking bearish.

Add to it, on the weekly charts Nifty seems like finding some resistance on a year long trendline at approx 5275-5305.

As it has already breached the low of prev candle on weekly charts, I believe that we may witness further corrections fuelled by banking sector.

Below 5262, it may test 5239-5204 on intraday basis.

On the upside however, if Nifty manages to break-free this resistance zone, its next near-term tgt should be 5535, intraday tgt at 5300-5337 above 5268.

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.