Over the past couple of weeks, the Indian equity market has been on a roll. It has not only managed to take out a double top resistance at 15,431, but also closed at a new lifetime high of 15,670. The extent of the buoyancy has been such that Nifty has accumulated nearly 1,000 points of gains in just three weeks.
The volatility, as represented by INDIA VIX, has fallen another 8.40% and the index currently stands at 15.9400. This is by far its lowest level in recent months. This low point was seen previously only in February 2020.
The Volatility Index and Nifty50 always share an inverse relationship with each other. So, with the current low levels of the Volatility Index, it would be interesting to see what insights it throws up in the current technical setup.
While legendary investor Jim Rogers believes that commodities remain one of the cheapest asset classes right now despite a considerable run-up in prices, he warns of a correction in the short-term.
Trade Setup: Nifty may make a technical pullback on Monday; stay away from high beta stocks
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Trade Setup: Nifty may make a technical pullback on Monday; stay away from high beta stocksBy
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Monday s session is likely to have a tepid start to the day. The levels of 14,680 and 14,735 will act as immediate resistance points, while support will come in at 14,550 and 14,480 levels.
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The pattern analysis shows that the index was very much within the falling channel formed after marking the high point at 15,431. Nifty is once again between its 50-, and 100-DMA at 14,782 and 14,459, respectively.
Tech View: Nifty50 resistance seen at 14,560; analysts say buy on dips
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For the day, Nifty closed at 14,483 level, up 142 points or 0.99 per cent. Mazhar Mohammad of Chartviewindia.in says the 14, 560 level would be crucial for Nifty.
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Independent analyst Manish Shah said Thursday s bullish Piercing Line on Nifty is giving way to bullish sentiment, but the index still needs an additional confirmation of the change in trend, which was absent in the last available data point.
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NEW DELHI: Nifty50 on Monday breached the psychologically important 14,500 mark, but failed to hold above it on a closing basis. The index formed an indecisive candle on the daily chart, with a long upper wick, suggesting selling at higher levels.
NEW DELHI: Nifty s promising gap-up on Tuesday proved to be day s high, as the index ended the session forming a bearish candle on the daily chart that resembled Bearish Belt Hold.
During the day, the Nifty bulls struggled at 14,500 level, even as they defended the crucial support of 14,200 well.
The face saving-act, however, did not impress analysts, who believe the index could soon breach the 14,200 level and trigger more weakness.
Sameet Chavan of Angel Broking said that the market is struggling at higher levels and Tuesday s session was a good example. Tuesday s high coincided around the resistance zone of 14,500-14,550. The way the index dropped towards 14,200 in the latter half suggests that things do not bode well for the bulls. Although we did manage to hold the key support level, the possibility of sliding below it has increased now. Below 14,200, Nifty may test 14,000-13,700 levels, Chavan said.