In the previous five weeks, the Nifty has rallied roughly 2,400 points from its low of 15,671, but it closed below 17,700 on April 7 and filled a rising gap that had opened three days before, suggesting that the trend would stay neutral with a bullish tilt for the short to medium term.
For the last several weeks, the Nifty has remained above its 20-week simple moving average of 17,271, indicating that the index is gaining momentum. On the daily charts, the index broke out of a Cup & Handle pattern around 17,450 a few days ago and has since established a Lower Top Lower Bottom pattern, indicating that it may return to the breakout level in the coming days.
On the indicator front, the daily chart’s relative strength index is holding above the 55-mark, indicating optimistic momentum. The levels of 18,000 and 18,350 provide immediate resistance, followed by 18,604 and 19,100. The index’s downside support is around 17,450, followed by 17,000 levels. The index is in a downtrend. In the following days, the Nifty will trade in a range of 17,450–18,000 points. The index has support around 17,450, and if it is broken, it would fall to 17,000 points.
Bharat Electronics has delivered a five-month consolidation breakthrough on the weekly charts that it had been developing since November 2021, and is trading at a lifetime high. Every time the price rose, the volume increased, indicating a strong bullish undertone.
On the daily chart, the company has rebounded back every time it has taken firm support at the 200-day SMA, signaling long-term bullish strength in the stock. On the indicator front, RSI on the weekly time frame remained above 60, with a higher top higher bottom pattern, suggesting rising positive momentum in prices.
After establishing a triple bottom price pattern at Rs 200 from October 2021, Tata Power Company has provided a powerful breakout at an all-time high level with volume confirmation.
Since June 2020, the stock has been trading above the 20-week SMA with little whipsaws, indicating strong optimistic emotions for the medium to long term. On weekly charts, the RSI indicator is maintaining a level above 65, suggesting strong momentum.
After a recent decline from Rs 889–650 levels, Tata Consumer Products is sustaining a higher peak, higher bottom pattern on all timeframes—daily, weekly, and monthly charts (which is approximately 27 percent).
On the daily chart, the stock has been trading above its 200-day SMA with volume confirmation over the last several days, indicating a bullish undertone. On the indicator front, the RSI is above 55 and rising higher on the weekly chart, suggesting increased positive momentum.
Frequently Asked Questions (FAQs)
Q1. What Is the Relative Strength Index (RSI) and How Does It Work?
The RSI is a technical analysis tool that determines if a stock or other instrument is overvalued or oversold by examining the extent of recent price changes. The RSI is illustrated as an oscillation with a 0 to 100 frequency.
Q2. What do you mean when you say "support" and "resistance"?
A price point below the present market price that indicates purchasing interest is known as support. A price point above the present market price that indicates selling interest is known as resistance. Targets for the trade may be identified using S&R.
Q3. What is the SMA (Simple Moving Average)?
It’s just the average price for a certain time period. Because it is shown on the chart bar by bar, generating a line that travels along the chart as the average value changes, the average is termed “moving.”
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Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.