Hot Stocks | Granules India, Dr Lal Path Lab, Navin Flourine are short-term buys
Episode 2454, Apr 28, 2020, 01:30 AM
Nifty has been trading in the rising wedge pattern on the daily charts which is contracting and that is why the range of Nifty is getting narrowed down as the time progresses.
The lower band of this wedge projects the support around 9,200 levels, while the higher band of this wedge is placed at 9,600-9,650.
Before 9,650, there is a short-term resistance placed at 9,390, which is not only the previous bottoms but also happens to be the 38.2 percent Fibonacci retracement of the entire fall which Nifty has witnessed from 12,430 to 7,511.
Any suitable level above 9,650 could extend the rally towards 9,970 which is the 50 percent retracement levels.
RSI oscillator on the daily chart has reached above the benchmark level of 50 which indicates the sustainability of the trend.
The MACD indicator has also been trading above its signal line for the last couple of weeks.
On April 9, 2020, the 8-day EMA showed bullish crossover on 13-day EMA for Nifty and since then that bullish setup is intact.