In the monthly report published on September 03, we said “Our bias would be positive as the index is in a bullish trend”
and also mentioned that “the index may move toward 17,400–17,500 in the next few days and weeks”. Today, the Nifty
closed at 17,585.15.
An analysis of the chart depicts the following:
- The index has gained around 1.24% this week with positive bias. It has been maintaining a higher-high, higher-low
price formation for the last seven weeks. It also hit a fresh life-time high at 16,792 this week. The momentum indicator RSI plotted on the weekly timeframe is consistent and sustainable above the 65 mark, which shows strong bullish momentum from the short-to–medium-term perspective.
- Likewise, on the daily chart, the index is in bullish momentum and travelling in uncharted territory, displaying no
signs of weakness as of now. It is trending above its all key moving averages, especially the 21-DMA, 50-DMA, and
200-DMA by 3%, 7%, and 16%, respectively. The momentum indicator RSI plotted on the daily timeframe chart is
consistent and sustainable above the 65 mark, showing a strong bullish trend. Currently, RSI is placed at 81.
- The Nifty has been trading in a sideways zone from September 6, 2021 to September 14, 2021. On September 15,
it had a small breakout from that consolidation zone (as marked in black color on the daily chart) after the union cabinet approved production-linked incentive schemes for the auto sector and relief measures for telecom companies.
All the above-mentioned multi-timeframe technical parameters, along with the O’Neil Methodology of
market direction, indicate the index is in a strong bullish trend. The bullish momentum will remain intact in the upcoming
weeks and the index might move toward the 18,000–18,200 mark in the next few weeks. However, on the flip side,
Nifty has support at around 17,350 levels , followed by 17,250 levels. FII/ DII Activity in the Second Week of September Current Status of Major Sectoral Indices - Per O’Neil Methodology Current Status of Major Global Indices - Per O’Neil Methodology SWINGTrader India performance chart
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