Suryaa National Desk: Surya Stock Market & Technical Analysis Desk: Indian stock market indices showed a solid recovery last week with a bounceback of 2.78 percent. This... Surya Stock Market & Technical Analysis Desk: Indian stock market indices showed a solid recovery last week with a bounceback of 2.78 percent. In this sequence the benchmark index Nifty-50 successfully crossed the technically crucial 200-week moving average mark. While the Nifty's recapture of this level, which is considered the basis of the long-term trend, has given a fresh boost to market sentiment, technical analysts are clear that strong resistance levels at the upper levels will rule the next rally.
Key Support and Resistance Levels: As per the technical charts, Nifty needs to cross the above barriers to break the consolidation phase and continue the bullish rally: Immediate Resistance: 23,300 and 23,550 levels are likely to become immediate resistance for Nifty on the upside. The index needs to sustain above these resistance levels for the primary uptrend to fully resume. Key Support: 22,950 and 22,650 levels will be the key support for the index in case of correction. In particular, the 22,500 22,650 range forms a strong 'confluence support zone' together with the 200-WMA. Technical Indicators Analysis: Although the Nifty 200-WMA has moved higher on the charts, the technical indicators make it clear that the internal momentum has not fully strengthened yet: Weekly RSI remains at 42.29.
It remains below the neutral 50 mark, suggesting that the internal momentum is still weak. Weekly MACD is still in the bearish zone and is trading below the signal line. Moreover, limited trading sessions due to Dussehra festival holidays in the upcoming trading week will also affect the volumes. Against this backdrop, investors and traders are advised not to rush into buying and to follow a stock-based approach and strict stoploss till the Nifty breaks 23,300-23,550 levels with high volumes.
