In a highly volatile session, NSE Nifty resumed its correction on Monday, as it slipped over 130 points from the days high to end 0.53 per cent lower.
Mondays session has reinforced the 10,760 level as a formidable resistance point in the immediate short term. The upcoming session session is likely to see a soft start to the day and there are strong possibilities of the markets extending its corrective trail.
Any upside will remain limited and the Mondays high point of 11,710 is likely to now act as lower top and immediate short-term resistance for Nifty.
Tuesdays session is likely to see 11,655 and 11,710 levels pose stiff resistance. Supports may come in at 11,550 and 11,470.
The Relative Strength Index (RSI) on the daily chart stood at 63.0704. The RSI has not only marked a fresh 14-period low, which is bearish, but it has shown a bearish divergence against the price. A bearish divergence occurs when the RSI marks a fresh 14-period low, while the price does not.
The daily MACD has turned bearish following a negative crossover and now trades below its signal line.
On the charts, an Engulfing Bearish candle has emerged. This not only lends credibility of 11,760 as a formidable resistance in the immediate short term, but also potentially establishes this as an immediate short-term resistance point.
The present structure on the daily charts makes it clear that there is a very limiteRead More – Source