MARKET SUMMARY: – The Nifty50 index selloff continues in the last trading session of the week. The index opens gap positive but succumbed to the selling pressure and slide down -1.02% to 10121. On WoW basis, the Nifty50 has a November contract expiry, Dipped more than 2.57 % to 10121and mark weekly high and low of 10409 and 10108 respectively.
A data of 6.3 v/s 5.4 marks a trend reversal in the declining trend of the GDP data. The Indian economy on the recovery path and impact of Demonetization and GST impact is fading away.
TECHNICAL COMMENT: – On the daily chart, the Nifty50 index forms a long bearish candle and closed near the day low. The index, however, continues the Thursday selloff shown some declining of the trading volume in Friday session.
The Nifty index trending downside and closed below the 50 days SMA whereas RSI stands at 38 level. The NIfty holds immediate support at 100 days SMA of 10060 level below which psychological level of 10000 can be tested on the downside.
A psychological level of 10000 may act as the strong support in the immediate time and hold above this market may trend sideways for a while before approaching to trend up in the coming time.
In short-term time frame, Nifty50 hold immediate resistance at 10165 above which 10225 can be tested on the higher side
BOTTOM LINE: – Trading strategy For Nifty traders, The Psychological level of 10000 may act as a strong support in the short run.
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