Strong support seen around 12,000 in Nifty
On Tuesday, the Nifty breached its short term support of 12,087 and closed below its 50-day EMA for the first time since October 7, 2019. Trendline adjoining the previous bottoms on the daily charts projects strong support at 12,000-odd levels. On the Derivative front, highest OI is placed 12,000 strike. Nifty started its rally from September 2019 and since then has witnessed almost 5 running corrections with the bottoms being higher than the immediate previous bottom each time. Immediate previous bottom for Nifty is currently placed at 11,929, which can act as a far support. A close below 11,929 would be considered bearish trend reversal in Nifty. Resistance is shifted down to 12,272.
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Symmetrical Triangle breakout on the daily charts indicates continuation of an uptrend. Higher tops and higher bottoms are there on weekly and monthly charts. The stock is placed above its 20, 50, 100 and 200 DMA, indicating bullish trend on all time-frames. On-Balance Volume Index has registered a new top on the daily charts, confirming the price breakout. RSI has broken out from the long downward sloping trend-line and sustained above 50.
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Pennant Pattern Breakout is seen on the weekly chart with rising volumes. Downward sloping trend line breakout is seen on the weekly charts. Primary trend of the stock has been bullish with higher tops and higher bottoms. MACD indicator is placed above its signal and equilibrium line on weekly charts. Weekly DMI Indicator has turned bullish as +DI has been sustaining above its equilibrium line.
Disclaimer: Views expressed are the author's own. He may have positions in one or all of the above mentioned stocks.