Nifty Analysis for 7th Sept

Nifty CMP- 11333.85

EOD Analysis

If one recall the contents of our previous post i.e., on 24th Aug, we have mentioned that around 11705 range index price faces the major resistance. On 31st Aug we have witnessed a gap up opening above the said levels (high of the day was 11794.25). However index price soon slide to lower levels and crossed below 11705 range. There after we have also seen the index price to test the long held trend line as discussed in our previous post and same was broken.

Below is the EOD chart illustrating the price action –

As mentioned above Index price had closed below the trend line which indicates bearish sentiment in the market. As for the coming days we anticipate the following price action – 

As shown above in the Nifty Weekly chart, index has formed a Bearish Engulfing Candle on weekly time frame, indicating a bearish sentiment in the market. Whenever the said pattern had  formed we can see a significant fall in price. As such it is prudent to follow the trend and take the positions accordingly.

On the other hand 11207 and 11042 shall act as significant support or demand area for Nifty. Similarly 11384/11472/11548 shall act as resistance levels.

Going forward 11384 shall act as Trend Deciding level for Nifty. And one shall closely observe the price action near the said range.

The Trend in longer time frame is bearish.

Nifty Harmonic Pattern

Nifty on Two hours chart is likely to complete Bullish Gartley Pattern. One can look for buying opportunity near PRZ i.e., 11256/11207 with feasible stop loss. 

Note – 

Due to some personal work we are not able to make regular updates. We hope to get back on track as soon as possible. Sorry for the inconvenience. Readers can visit Nifty Spark page for the Daily Nifty Spot levels.

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