Nifty broke its monthly resistance range and, given that it closed above the important level of 24,230, it's a strong sign of a bull run ahead. One more positive sign is nifty given closing above Jan month high, and we already told earlier if Nifty broke and sustained above Jan month high, then whole year we can see most of the bull market move. On the other side, the Pahalgam terror attack news is still there, and any military action can create panic and fall in the market, so we have to remain liberal on the downside too.
On the technical side, RSI is now trading above the resistance level of 60, so we can see consolidation or bullish moves in the market in the coming days. Also, the monthly closing is now above the 20 SMA as well as the January month high. The monthly super trend is still positive. The market mood indicator gives a natural look. The retracement move can lead to one more entry for bulls near by 23,800 zone. The overall view is looking stronger positive for the month, and bulls will do some surprising moves.
On the monthly time frame, the Nifty faced resistance at 25,350. This month's Nifty range is 23,550 to 25,350, which is 1,800 points.
Last'week, Nifty managed to close above 25,000 for the first time“on the weekly chart after September 2024 but unable to hold the peak and drag down below 25,000 on closing basis. No doubt bulls are holding their grip as of now but chart show something else. Here nifty try to breach the RSI 60 level but we observed a diversion on chart so time to stay alert here.
On the technical side, Nifty again at the RSI resistance area of 60 and settled same zone. The weekly super trend is positive, but a hanging man pattern is observed on the weekly time frame. The volumes do not look impressive on the buying side. Nifty is still protected by the 20 SMA and is also trading above the same. The next buying will come in the market only on the Nifty closing above the previous week's high with good volume, till the time Nifty remains in the same range as discussed earlier. Based on the weekly closing, the technical indicators are showing sideways to bearish moves for the next week. Last week's key support level of 24,400 is now acting as a support level for the bulls next week.
This week's range remains the same as last week, with a total range of 1050 points. A support seen at 24,400 and resistance observed at 25,450, with a breakout or breakdown could add an additional 350 points.
The nifty clearly indicates a retracement move on the weekly time frame and suggests a bearish move for next week, but the daily time frame is showing a sideways move. If Monday market opens gap down or flat and settles on the downside, definitely the 24,200 level will come into the market during the same week. Also, next week is the monthly expiry, so chances are the market will remain range to profit booking.
On the technical side, Nifty is now again struggling at the RSI 60 level, so it indicates a consolidation move in the market. The super trend indicates buying on a daily time frame, but in a smaller time frame, it is negative. The reversal move pattern is already formed on the daily time frame, but we need more confirmation with consecutive closing above the 25,085 levels. The 20 SMA level is still protected on the daily time frame, too and also got the reversal move from the same level. The inverted HNS pattern target 25,640 is still pending. But we always said to be more cautious when everything looks fine or positive.
The previous gap is still pending on the chart.
The daily range for this week is 24,550 to 25,085, with a total range of 535 points.
Any sideways breakout or downturn will add an additional 200 points.
Back-to-back bullish candles and a positive closing done by Bank Nifty on the monthly time frame are also the same as Nifty here. Bank Nifty is given closing above Jan month closing, so bulls are ready to take charge here for the next stop of 57,753.35 from the current level. Keep note of one thing that Bank Nifty is super strong compared to Nifty, and potentially it will easily give a minimum 6O7omove. However, past data shows a mixed move for the May month progress compared to the Nifty return.
On a technical look last month, we gave you a hint about V-shape recovery in RSI and gave a green flag in Bank Nifty for a massive 3k plus point move, and the result is everybody knows. The RSI is now again above 60 and trying to cool down before an upside move. The monthly super trend is currently showing a buy signal. The volume is looking attractive and looks bigger compared to previous months. Also, the monthly closing of Bank Nifty has covered the previous 10 months of closing, which means bulls are ready to roar. The private and PSU banking charts also heat up, showing a positive move. The monthly closing is above the 20 SMA.
The overall range of the Bank Nifty is 4,250 points for this month. The upper side resistance at 57,750 and the lower side support at 53,500 are further trend-decider levels.
The’ uncertainty still remain's in'the"bank nifty, and no further positive move’ will "* “ come till the bank nifty is playing inside the inside bar candlestick pattern, and the previous high will act as a resistance for the bulls in the coming season. Here bank nifty is squeezing the previous range of 2000 points to 825 points, and if this range is broken, we can see a minimum 600 to 1000 point movement. The previous week's inside bar candlestick pattern is still active, and we are waiting for more confirmation.
On the technical side, the weekly RSI of Bank Nifty also shows a divergence similar to Nifty. Along with the inside bar candlestick pattern, here we can see the formation of a flag and pole candlestick pattern, and the candle that Bank Nifty has formed by taking it upwards is a doji candle, so we need more confirmation here. The volume is not much attractive compared to the previous week's buying volume. The option data is showing a sideways move ahead. The weekly super trend is also positive, so it's a strong buying signal, but it needs to break the range first.
The overall range of the Bank Nifty is 1,400 points for this week. The upper side resistance at 55,950 and the lower side support at 54,550 are further trend-decider levels.
The daily closing is observed above the neckline line of the flag and pole pattern, as said earlier. Now we have to wait here for the retracement move before we go long in Bank Nifty. The next move will be like 55,750 then 55,100, and once this retracement move is over, we will initiate a long position around the 55,100 level with the next confirmation candle
On the technical side, here we also get the same move in Bank Nifty too, like Nifty, and here the RSI is also struggling at the level of 60. The buying volume is observed over the last week, but not as much as healthy as required. The daily super trend is positive and indicates a positive move ahead. Other hand, the Nifty PSU bank chart is totally suggesting a sideways move, and Private bank charts formed a hanging man candlestick pattern on the weekly time frame, so time to be quite alert now, maybe the next will be a bull trap before expiry. The 20 SMA level is still protected, and below this level, we are going to initiate a fresh selling position.
The overall range of the Bank Nifty for intraday play is 700 points. The upper side resistance at 55,500 and the lower side support at 54,800 are the further trend-deciding level.
1. strong buying and accumulation observed last week,
2. Made fresh Breakout and retracment in process.
3. Government is bullish on this sector.
1. Reversal pattern observed on big time frame.
2. Stock continuously taking support at 20 SMA.
3. Acquired its first U.S. biologics manufacturing facility located in Baltimore.
1. Reversal pattern observed on all time frame.
2. Strong presence in the U.S. market, contributing to a revenue run-rate of $1 billion
1. Rounding bottom pattern observed.
2. Reversal confirmation us above mention price.
3. Strong performance in the U.S. generics market.
4. EPS increased 22% in last 5 years
Analysis by Market Movers
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