India Stocks: Nifty Trends

The market started with a gap up and then closed 1%, but it was unable to maintain a level above the short-term moving average (10- and 21-day EMA), and hit 24,400 on 8/9. This is an important level to watch for as it rises further towards 24,700, the upper limit of the bearish gap formed on August 5. If the closing price of 24,400 cannot be maintained, adjustments are likely to continue with support in the 24,100 to 24,000 zone. Nifty 50 closed the week at 24,368, down 1.4%.

The main levels of Nifty 50:

Resistance based on pivot points: 24,408, 24,433, 24,475

Support based on pivot points: 24,325, 24,299, 24,258

Special formations:

Nifty formed a bearish candlestick pattern with few upper and lower whiskers remaining on the daily chart. However, on the weekly chart, a hammer-like candlestick pattern, which is a trend reversal pattern, has formed at the bottom, and Nifty has been above the 10-day EMA for 13 consecutive weeks. Meanwhile, the momentum indicator RSI (Relative Strength Index) showed a negative crossover on a weekly scale.