Yesterday, on the daily charts, NIFTY again breached its very important support of 5265, by making a low of 5237.55. Now, NIFTY has entered into a weak territory, and may test the levels of 5185 in coming days. Again, the latest candle was an Indecisive Candlestick, but the presence of weakness in the markets is very well confirmed now. Market opened flat at 5273.40, made a high of 5283.05, but could not cross its intraday resistance of 5285, but in the later half of the trading session, weakness crept in, and after breaching the important support level, it managed to close at 5262.60.
With RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) giving SELL signals, along with a spurt in Volumes alerts about the weakness knocking at the doors. NIFTY broke its 20-Days EMA (Exponential Moving Average) of 5267.64, and proved the presence of weakness in the markets.
Now, the next intraday resistance for NIFTY comes at 5285 / 5300 levels. At the same time, 5235 / 5210 will act as major intraday support levels.
What does Indicators Say?
- RSI (14 Days & 9 Days): The values are 52.96 and 46.48, respectively and in the graph, it can be seen that Short Term RSI is below Long Term RSI, hence a SELL Signal is generated.
- MACD (26 Days & 12 Days): A negative is crossover is indicated by both the Moving Averages, the values are -18.36 and 16.85, respectively.
- +DI: 19.00, -DI: 18.00, ADX: 34. The Average Direction index is sloping downwards, and Both the Positive Directional Index and the Negative Directional Index are signalling a negative crossover.
- SMA (50 days) & EMA (20 Days): The values of these two indicators are 5077.95 and 5267.64. 20-Days EMA has already generated a SELL Signal, whereas 50-Days SMA is still in positive territory.
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