Nifty Index Technical Analysis. Chart Trend update- December 2018.
CNX NIFTY Index Closes at 10685. Let us see what Ichimoku cloud and Moving Average charts suggest on NIFTY index.
Nifty Index Technical Analysis on Ichimoku Chart with Daily Candle:
We could see that the NIFTY index is bearish in daily charts. It faces resistance near 10950 on the upside and had found support at 10,000 recently.
NIFTY is likely to be range bound between 10,000 and 10950 in December 2018. Any breakout of this zone will take Nifty to new support and resistances.
In short term we can see that the magnetic line is formed in pink at 10390 and we can also see the recent pull back from 10,000 had ended at 10760-10774.
We expect the NIFTY to move, in short term, towards 10490 and 10390 with a SL of 10760 on closing basis.
Nifty Index Technical Analysis on Ichimoku Chart with Weekly Candle:
Weekly candle will give a little longer time frame targets.
We can see that the NIFTY is taking good support of the cloud and remains Bullish. Magnet line is formed at 10880 and NIFTY is getting pulled towards 10880. 10880, lies between our daily chart range quoted above as 10,000 to 10950. So, above 10760 which is our SL in daily chart, NIFTY can move easily towards 10880.
Putting data available from both Daily and Weekly charts of Ichimoku cloud, we anticipate NIFTY Index to move towards 10490 and 10390 before it could move towards 10880. Above 10950 and 11000, we can expect NIFTY to rally 500-750 points in a month.
Nifty Index Technical Analysis on Moving Average Chart with Daily Candle:
On Daily charts we could see the NIFTY is pulled back towards 200 EMA after the correction towards 10000. Trend is not clear. We could see a Death Cross Happening in NIFTY. Trend is flat.
Death cross can be confirmed only after a strong downward move below 10000. Flat 200 EMA line suggest that the market would remain range bound for a while.
Nifty Index Technical Analysis on Moving Average Chart with Weekly Candle:
on Weekly charts, we could see the CNX NIFTY has pulled back towards the Green line after being corrected towards 10000. 200 EMA in weekly charts lie at 9250 and is quite far away and seems the long term trend is very positive. But taking long term support between 8800 and 9250 is a steep correction and more unlikely. We should stay cautious with supports of 10300 and 10000.
Additional Tip for Traders:
Use Daily charts and Weekly charts to identify Medium term to long term trend. Use 15 mins Charts to trade for 1-2 hours. Use 1 hour candle charts for 1 to 1 1/2 day holding and Use 4 hour candle charts to have a trade holding duration of 2-4 days.
Can you buy NIFTY 50?
NIFTY 50 can be brought through Futures contract and also through Index funds. It cannot be bought as shares.
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