RSI Edge Analysis for Nifty & Bank Nifty
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Nifty – Nifty have registered a positive close this week, the spinning top formation (on daily chart) is an indication that confusion still persists in the markets. The index is at an important level now. The RSI is hovering near the bullish extreme and prices are near a down side gap area.
The current levels may act as resistance for Nifty and prevent it from any upmove. The levels to watch next week are 10580 and 10670 on the upside while 10315 will act as support on the downside. As long as Nifty trades above 10315 any weakness may be ruled out. Price action needs to be watched at 10580 and 10670 levels.
Bank Nifty – A doji has appeared in the last session on the Bank Nifty daily chart. The volume profile on the doji suggests a good turnover has taken place and change of hands have also occurred. This doji has appeared near a resistance and RSI is also hovering near bullish extreme levels.
A move below 25075 will active the bears in the game and banknifty may drift down to 24100 and 23700 levels. Levels to watch in the coming week is 25500 and 25700 on the upside 24700 on the downside.
Bharat Jhunjhunwala MFTA, CMT, CFTe, MSTA