Technical Analysis on Nifty & Banknifty using RSI Edge.
Nifty – The index closed positive in the last session. The IT stock led the Nifty rally. While other sectors, specially banks were lagging. The Index is now in a gap area (which may be a signal of impending correction) levels to watch for the index in upcoming week are 10670 and 10760. As long as 10510 is protected on the down side, bears don’t have any chance.
One important thing to notice is that “RSI TIME CYCLES” are active from 18th April 2018. This may play a spoil sport for the trend to continue up. But looking at price action, 10510 remains a very strong support.
Bank Nifty – The index is weaker and is lagging the Nifty. This week a doji has formed at the 20 sma area.
A pure indication of indecision in the market. The RSI is shrugging to move up. 25350 remains a resistance level. As long as Bank Nifty trades below this, the index is expected to test 24760 and 24470 levels on the downside. On the daily charts the index repelled from the gap area. Overall Bank Nifty is weak.
Bharat Jhunjhunwala MFTA, CMT, CFTe, MSTA