Nifty Daily –
Nifty continues to be range bound and have moved to the upper end of the resistance zone. The range is currently between 11000 to 10600 on a closing basis.
Nifty is still hugging the lower trendline of the rising wedge. In the meantime, the VIX is showing some risk off tendency and on the verge of giving the crossover.
Nifty Weekly –
We have a positive crossover on the PPOs and it’s bullish. A move above 11000 and staying above that level will be bullish & should take the Nifty to 11400.
Let’s examine where we stand in terms of the two catalysts discussed last week –
Nifty AD Line: The market breadth has deteriorated further. Unless we see a dramatic improvement in the next few weeks this will lead to a correction in Nifty. This is in sync with the sector performance where all the broad market indices have relatively weakened against the Nifty in the last 14 days.
Bollinger Band Compression: Wait for a move above the horizontal lines for an explosive move