Nifty Monthly Chart
Nifty marched nonstop from 5,640 to 5,900 and as can be seen from monthly chart it has seen a fresh breakout on monthly charts.Its a blowout rally which is flaring out.Uptrend is expected to continue and volatility may be the order of the day for some more time and hence the investors are suggested to trade cautiously.
Nifty Weekly Charts
On Weekly charts we have risen almost 10% in 2 weeks ,hence a possibility of a running correction is always there and should be used to buy on dips.5740 was a major resistance on monthly,weekly and daily and will now prove to be a major support in medium term.
Technically resistance becomes support after its crossed and sustained.
- RSI is at 77 levels moving in the overbought zone, indicating that there is some more upside potential left for it.
- Stochastic is currently moving in overbought zone at 88 on the brink of showing positive crossover indicating upside.
- MACD is trading in positive zone showing positive divergence also suggesting uptrend.
Traders should keep 5815 as SL for all longs as it was the thursday’s low and will act as support in case of running correction.
Nifty Trend Deciding Level:5815
Resistance@5940,5988 and 6091
Support@5842,5815 and 5773