Nifty may consolidate at 5800- 5950 lvl next week

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Daily nifty chart is showing that nifty may consolidate at 5800- 5950 lvl next week

As per  technical charts, the short-term indicators are now in clear buy mode and the medium-term ones, which were close to giving a sell signal at one point, have turned the corner once again. The moving average convergence divergence (MACD) on daily charts is in buy mode and it has been able to go back to the positive territory, which is a bullish signal, though it needs to cross the filters to confirm the longevity of the trend.

On the weekly MACD charts, the average and trigger lines — which were about to give a sell signal — have once again diverged from each other. If they move further apart, then it would give a fresh bullish signal.

The 14-day relative strength index (RSI) continues to move up in the equilibrium territory. Similarly on the weekly charts, the indicator is moving in tandem with Nifty. Other short-term indicators have moved up and a number of them have entered the overbought territory, though they have still not given any sell signal.

With regard to support and resistance levels, Nifty is likely to face resistance at the 6,050 level and that would come more due to profit booking by traders than anything else. If Nifty is able cross that level, which it should do easily if the outcome of Parliament vote is favourable, then the next resistance would be in the 6,180-6,200 range. Now that can lead to a sharp rise in Nifty, banking stocks and some of the capital good stocks, which are showing strength on their individual charts.

As far as support levels are concerned, if the market sees a correction after a sharp rise, then we expect 5,700 to become an important support. But if the correction starts this week without any further spike, then it is very likely that Nifty will breach the trendline and move below the 5,500 mark over the next couple of weeks.

In such a situation, small investors and traders should wait for the correction to enter the market with a long-term perspective and increase their exposure to mid-cap stocks. Some of the quality mid-cap stocks are likely to give better returns than large-cap stocks, which have already gone up quite a bit over the past few months

Nehal: Whats up

kailash: vgm

fine

Nehal: So whats going on Sunday morning

kailash: trying to pickup next move

it seems nifty will consolidate at this lvl

Nehal: Cool

Sounds like good idea

kailash: and then pick up next direction

Nehal: why do you feel so

kailash: seeing 2 year weekly chart

Nehal: sahi

kailash: in May 11

Nehal: wont it make new high from here

kailash: nifty was struggling here

Nehal: ahan

kailash: see if it stays here in May 11

then why won't here

Nehal: hmm

Thats true

kailash: every lvl was respected earlier

Nehal: hmm

kailash: are u seeing weekly chart

Nehal: Actually im on mobile and out of home

However now ive got new desktop

kailash: ok

Nehal: So we can discuss things later now

kailash: k

Nehal: Chartink.com

kailash: han

Nehal: This is good chart website

kailash: ys

Nehal: Have you tried weighted average

kailash: all are same

weigtage gives freq changes

same expo

simple is slow

Nehal: so which one you use

kailash: simple

i m not sticking to 1

Nehal: hmm

kailash: always new experiment

Nehal: same here

Ive started seeing charts during market hours now

kailash: ok

Nehal: based on that got some cool calls

kailash: ok

Nehal: I discussed them with you as well

kailash: yes

Sent at 11:06 AM on Sunday