Daily Nifty Technical Outlook by Finvasia

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Nifty Fifty after plunging 1.17% closed at 5528.55. Nifty is trading near its critical support level of 5500 and breaking of that will invite more bears in the market. The 50 share index after having a pullback rally for two days, now resumed its downtrend and further weakness is expected once it breaks the low of 5477.

If the Nifty respects 5500 level and sticks there, we might see a reversal. Nifty if breaks on the downside will see its first support near 5490 and breaking that it may test the 5445 levels.

On the upside Nifty may test 5550 level and crossover that it may go to 5580 levels.

Source: Finvasia Research

Yesterday, CNX Nifty gained some momentum and closed 0.72% up at 5568.40. If Nifty extends the rally today, it will test the major resistance around 5590 to 5600 levels and if it breaks that level, it will swiftly move to 5632 level, which is its 200 DMA.

On the downside Nifty may find its immediate support at 5520 and after that the second support lies at 5490 levels. If Nifty breaks this level decisively, we may see more bears in the market and nifty trading near 5450 levels.

Source: Finvasia Research

Yesterday, Nifty Fifty broke all its resistance levels and 200 DMA to close at 5688.95. Nifty had convincingly crossed its resistance of 5600 and 5632 indicating that the bulls have made a comeback after a long break. The index had also closed above its 200 day EMA yesterday.

On the upside Nifty has the minor resistance near 5720 before the major resistance level of 5750. On the downside, 200 DMA near 5640 will act as a major support and breaking of that second support will come at 5600. Further, weakness can be seen in the market if Nifty breaks the support of 5490.

Source: Finvasia Research

CNX Nifty yesterday closed flat at 5688.70. It tested the resistance near 5720 and retraced nearly 50 points from there. We may see resistance near 5720 and breaking of that will encourage bulls to participate once again in the market.

CNX Nifty will face a very strong resistance near 5750, so any crossover above that will bring rally in the market and if Nifty closes above this level we may see sustained buying.

On the downside Nifty may test its 200 DMA near 5636 and if it breaks that, we may see bears entering into market with heavy selling. Nifty might take support near 5600 levels.

Source: Finvasia Research

After witnessing the firm uptrend, CNX Nifty closed 1.66% higher at 5783.10.

Nifty closed convincingly above the 5750 levels indicating that we might see some buying in the market, however there is 50% Fibonacci resistance at 5794 where we can see market consolidating.

5794 level will act as a short term resistance and on the downside 5756 will act as a short term support.

If Nifty will break the 5794 level, bulls will stretch the rally and lead it to enter in the strong resistance zone of 5830-5860.
On the downside, 5730-5750 will act as a strong support zone.

Source: Finvasia Research

Nifty broke its major resistance of 5794 and traded above the key mark of 5800. It closed at the important resistance level of 5834.

We expect Nifty 50 to consolidate near these levels and if Nifty follows the uptrend the next resistance can be seen around 5860 levels.

If positive momentum continues and the fifty share index breaks this resistance level, we may see it rallying towards 5950. On the downside, the major support lies at 5794 and if breached, we may see it dropping towards 5756 level.

Source: Finvasia Research

On Tuesday, Nifty Fifty traded flat and closed at 5836.90. The key benchmark index plunged from near its resistance level of 5850 and touched the 5893 level.

As we talked in our previous reports that 5794 is a key support level, the CNX Nifty rebounded from this level and closed flat, covering its losses.

We expect Nifty to consolidate near these levels for the time being and if the resistance of 5856 would break, we may see bulls taking the charge and leading it to 5950 levels.

On the downside, Nifty can touch the key support of 5794 and on breaking of that we may see strong support at 5756 level.

Source: Finvasia Research

Yesterday, CNX Nifty had a rally and closed 1.36% up at 5916.30. Nifty in the previous expiry had a breathtaking recovery from depths of around 5500. We might see some consolidation near these levels and after that correction in Nifty can take place.

The 50 share index if breaks on the upside will see strong resistance at 5953 levels and crossover that, we may see the index touching 6010 levels.

If Nifty faces the correction, can test the 5868 levels which is also Fibonacci 61.8% retracement and if it busts through that, we may see it testing 5794 levels.

Source: Finvasia Research