Facts that Supports upward movement : -
i) High Volume and Inverted H& S pattern on verge of breakout
ii) Increase in earnings
iii) Decrease in Gross & Net NPAs.
iv) Target 900-920 suggested by brokerage houses.
v) FPI/FII increased holding from 51.02 to 51.43% in March 2021 qtr.
vi) Reduction in covid cases and normalisation in situation.
Facts against upward...
There is a RSI Divergence as can be seen in the chart. RSI is showing a down trend but nifty is at same level. Consider shorting and target shall be 14900 level.The decrease in volume as shown by decreasing height of green candles also strengthens the above argument of mine.
Target - 14930 to 14900
Stoploss - 15160.
Throw a look at the pattern. One can very easily judge it's a rounded bottom pattern forming a cup. This is verified by the increasing volume after it rises from the bottom most region. Long term view is "LONG". Just let it reach near the boundary of the cup pattern or the support line . From there onwards and if RSI bounces back you can take a long position....
NIFTY 50 is following the rounded curve path .As can be seen nifty fell only upto the boundary of this curve as of now. The 1st major resistance in the upmove shall be 15530-15580 region/area. Once it crosses that with significant volume , the next hurdle shall be 15415.It may form a handle pattern later. Any comments.
A divergence is observed between Nifty50 chart and RSI. Do observe how RSI declines from almost 80 points but during the same period Nifty increases.
This is for educational purpose only. The market seems overextended , specifically from last two trading session
Comments are welcome.