Nifty Technical Outlook: Investors Are Advised To Continue Exercising Caution
A weak intermittent bullish trend may have formed in the week ending 22nd May, when the index sliced the middle Bollinger Band and found support there, this seeming "strength" appears to be short lived, as the upside seems to be firmly capped at around 11,000 levels, which is barely a couple of hundred points from here
Photo Credit : Reuters,
A multitude of headwinds have taken a combined toll on Indian equities since the beginning of the calendar year. At the same time, hope floats that earnings growth will pick up at least moderately in the coming quarters. These two opposing forces have resulted in a frustratingly range bound market that has basically moved nowhere on a point to point basis, in as many as six months of 2018.
This indecision can be clearly observed on the charts too. Notice how all the weekly candlesticks after the 2nd week of May have had short bodies, implying that markets are more or less closing each week around the same levels at which they traded at the weekly opening bell.
Although a weak intermittent bullish trend may have formed in the week ending 22nd May, when the index sliced the middle Bollinger Band and found support there, this seeming "strength" appears to be short lived, as the upside seems to be firmly capped at around 11,000 levels, which is barely a couple of hundred points from here.
Investors are advised to continue exercising caution.