Nifty above 100-DMA for first time since Oct 27

Nifty (spot) is trading above 100-DMA for the first time since Oct 27. The 100-DMA level is now seen at 7613 levels.

Last break above 7613 seen on Oct 16 lasted only few days. A subsequent break below 100-DMA led to a sharp sell-off

Hence, bulls need to be cautious here. Daily RSI is fast approaching overbought zone. On 4-hr chart, Price-RSI  could form a bearish divergence if the current candle closes lower

Nifty.png

Nifty’s failure to sustain abv 100-DMA of 7613 would expose falling trend line support at 7540 levels.

A daily close below 7540 would mark another failure to sustain above 100-DMA and could trigger a sell-off to 7405-7252 levels.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s