The Nifty50 on Friday fell for the second straight session as it ended with a loss of 64.15 points or 0.56 per cent at 11,456.90. The index has attempted to establish a temporary top, with the 11,570 -11,600 zone acting as a key resistance area.
Traders can expect a negative start to the trade on Monday. Even if market attempts a pullback or witnesses any intraday surge, it should be best avoided, as any sustainable upmove will occur only above the 11,570 level.
Mondays session is likely to see 11,510 and 11,570 levels act as immediate resistance. Supports are likely to come in lower at 11,410 and 11,320.
The Relative Strength Index (RSI) on the daily chart stood at 72.00 and it has remained neutral, showing no divergence against the price. However, it still traded in the overbought zone. The daily MACD continued to trade above its signal line.
A big black candle emerged on the charts. It has occurred when the market is steeply overbought. Its occurrence near 11,570 also establishes this level as the immediate major resistance point.
The corrective intent of the market is likely to persist on Monday as well. This might result into increase in volatility over the past few days.
With Bollinger bands getting much wider than normal, theRead More
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