Weekly Timeframe: After showing intra-week decline and sharp lower levels recovery in last week, Nifty witnessed decent follow-through upmove during this week and closed the week higher by around 1%, as per w-o-w basis.
- A long bull candle has been formed this week and closed near the highs. This week’s upmove after the formation of important ‘hammer’ pattern of last week is indicating a near term bottom reversal in the market as per larger timeframe.
- The said key bottom reversal in the market has been formed at the crucial support of 10150 levels (orange dashed line) as per the concept of change in polarity. The presence of important support and a formation of crucial reversal pattern could possibly lead to further up move in the market for the next few weeks.
- The formation of higher tops and bottoms is intact and the Nifty is now moving up to form a new higher top of the sequence (above 10490 levels). This could be achieved in the next 1-2 weeks.
- Nifty as per weekly timeframe is showing time equality. After the formation of two bottoms (1st and 2nd X marks), Nifty consumed 5 weeks to show upmove and the sixth week has led to top reversal. Presently, after the formation of bottom reversal in last week, Nifty has moved up for this week. As per this pattern, there is a higher possibility of Nifty showing up moves for the next 5 weeks, before showing top reversal pattern again at the highs in 6th week (around 26-29 Dec).
- Weekly 14 period RSI has turned up from near the key upper levels of 60. As per the formulation of RSI, its turning up from near 60 levels could mean strengthening of upside momentum in the market for near term.
- Nifty witnessed promising comeback in the last couple of weeks and the overall chart pattern as per larger timeframe is suggesting more upside potential for the market ahead.
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- The immediate upside target for Nifty is around 10,625 levels, which is 1.382% projection and this could be achieved in the next couple of weeks. Key lower support is now placed at 10,250 levels.