Weekly Market Update – Strike further or Return to the base ?

 

Nifty took off like a Fighter Jet this week and we are now at the top end of the range again. Will it strike further or return back to the base?

 

Nifty Daily: 

  • Nifty took off strongly on the first day of the week in the absence of any further escalation on the Indo-Pak border.
  • Even though the subsequent follow up is missing, the last three days are sideways.
  •  The market is configured Bullish biased as reflected by the positioning of the EMAs. This has happened many time previously also but failed to follow through.
  • Keep a SL at 10950 and Hold long position. The possibility of a bullish continuation is high.

 

Nifty Daily

 

Trend Momentum:

  • The ADX(7) has moved up smartly and is now above 30 means trending strongly.
  • The breakout above the horizontal line at 11000 has sustained three days with negligible pull back. Short term bullish.

 

ADX with Nifty

 

The Intermediate-Term Trend:

  • The ascending triangle breakout on a closing basis has finally come.
  • PPO is also bullishly oriented.
  • The RSI has reached near the 90s region, overbought at the beginning of the breakout. A bullish sign.

 

Nifty Weekly

 

All in all, with no more escalation in the conflict the Nifty should move ahead from here.

 

 

Weekly Market Update – Strike further or Return to the base ?
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