Technical Analysis of Indian Equities by Nooresh

Nifty nearing Support. Bank Nifty–Highly Oversold. Setting up for a Bounce or Bottom ?

Nooresh Nifty

NIFTY 10700-10850 a strong support zone.
Previous breakout point at 10800-10900
200 dema at 10600-10700
Trendline support at 10800.
RSI now oversold at 30

Previous candle bottom with a good
recovery in the day at 10860 should
also act as support.

Nooresh Bank Nifty

BANK NIFTY --- RSI at sub 20.
Last seen in 2016.
Bottomed out in next 2-3 weeks.
Major support at 23500-2400.
Expect bottoming out in the
next few days

The only time before this RSI saw sub 20 was in end of 2011.

Conclusion

  • Markets do not fall or rally in a linear fashion.
  • Bottoming out in oversold zones can happen quickly at last bottoms for ex 10860 or take a grinding period of few days or a couple of weeks.
  • The strategy should be to deploy cash if one has or if fully deployed then to just wait and be patient.

For our services check link on top of website –

Can subscribe to The Agnostic Portfolio  ( Its down 18%  since launch in mid April) . A lot of stocks have now come to valuations where its tough to not make money over the long term. Do subscribe.

For Derivatives - http://www.nooreshtech.co.in/quickgains

QuickGains F&O

The product is for traders with a High RIsk Profile and High Risk Apetite. Holding period of positions is 1-15 sessions generally.

For customized Advisory Services for HNIS – Call Nooresh Merani 9819225396 or mail nooreshtech@analyseindia.com

Article by Nooresh Merani

Nooresh has written 2697 articles.

You can follow Nooresh Tech on Facebook and Twitter here.


{ 1 comment… add one }
  • S vijayaraj September 26, 2018, 06:02

    I like your views

    Reply

Leave a Comment