Shabbir KayyumiNifty was trading lower throughout the week but managed to maintain the pattern of higher high and higher low formations on a weekly basis which indicates correction leg is in progress. The index needs confirmation of closing above 5-DMA for stop and reverse pattern to buy. Intermittent correction and bounce back is a healthy sign for our markets as it allows cooling of momentum oscillators and helps bulls regain strength. However, one needs to be cautious on a decisive move below 10,800 which will be an early sign of trend reversal.Weekly and monthly parabolic SAR continued with a buy signal and as soon as correction leg concludes, original uptrend begins which can be used as a buying opportunity. However, current correction can extend to 20-DMA placed around 10,950 and lower towards crucial support zone standing near 10,800 mark.Close Guppy moving average is still in buy mode as short-term moving averages are trading above all long-term moving average showing strength in the current price action. At the same time, this move of the index has filled an important bearish gap placed around 11,260 mark and any further move can touch another higher gap standing around 11,633 levels.Shabbir KayyumiHead of Technical… Read full this story
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