The Indian equity market continued to strengthen on Friday
Tuesday , September 21 2021
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The Indian equity market continued to strengthen on Friday

The Indian equity market continued to strengthen on Friday as the benchmark index Nifty moved near the upper edge of its trading range and retreated from there with marginal gains towards the end of the day.

The market opened with a slight positive trend. In the opening minutes of trading, the index slipped into negative territory to mark the day’s low point. The index then recovered to creep back into the positive zone. It gained some strength as the day progressed. However, in the last one and a half hours, the market saw its gains reducing. The headline index ended the day with a marginal gain of 32 points or 0.20 per cent.

It is important to note that Nifty still hasn’t moved beyond the crucial 15,900-15,950 zone. Not only did the market enter this zone, but it also retreated after testing the upper edge of the consolidation range. According to a basic classical pattern analysis, it would be a simple conclusion that the breakout has not yet occurred. This will happen only if the index crosses the solid level of 15,950. Also, it is important to note that this breakout is something that should not be taken lightly. A confirmation must be awaited; For this to happen, a solid move above the 15,900-15,950 area would be crucial.

Monday’s session is likely to start the day with a calm. 15,900 and 15,965 levels will act as resistance points, while support will come at 15,780 and 15,710 levels. The Relative Strength Index (RSI) remained neutral at 55.90 and showed no divergence against the price. Although it remained neutral over the 14-day period, if we subject it to a pattern analysis in the longer term, it appears to be marking lower tops which is not a good sign. The daily MACD was bearish and remained below the signal line.

There was a doji on the candles. The emergence of the Doji near the resistance point is a sign of impending weakness; However, this will require confirmation on the next business day. In any case, such patterns have the potential to halt the current up move until a clean breakout is achieved.

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About Dwipen Gogoi

Dwipen Gogoi, MBA (IB and IT) and PGDFT from Pune. (Technical Analyst of AliceBlue) I am a You Tuber, Blogger and doing Technical Analysis last 10 years in Stock, Commodity and Forex Market. i am creating various trading strategies for day traders, swing traders, scalp traders.

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