The market posted around 3 percent loss for the second consecutive week ended January 28 as bears tightened their grip over Dalal Street after hawkish Fed commentary indicating four rate hikes in 2022, further selling pressure at FII desk, and rising oil prices.
The Nifty50 corrected up to 16,836 during the last week but managed to defend 17,000 mark amid volatility.
“Technically speaking, 16,800 is considered to be a crucial level because it coincides with the 78.6 percent retracement of the recent up move as well as the trend line support.
“On the flip side, if the market manages to recover, we don’t see it surpassing the sturdy wall of 17,350 – 17,500 before the Budget.
The stock is under positive convergence of long-term and short-term SMA moving averages, indicating a strong trend in the stock.
The stock was in a price-based corrective mode from the highs of Rs 540.
The stock bounced back after hitting the bottom border of the channel, which is positive.
Technically, the stock is still below the 10 and 20-day SMAs , however, it is comfortably trading above the support of 50-day SMA.
The stock price has broken out from the downward sloping trendline, adjoining the highs of September 28, 2021 and December 31, 2021.
On the weekly chart, the stock has decisively broken out its 6-8 months “multiple resistance” zone on a weekly closing basis.
This strong buying momentum was observed from its 20, 50, 100 and 200-day SMA which reconfirm bullish sentiments.
With current weekly close, the stock has decisively broken out its three years multiple resistance zone on a weekly closing basis along with huge volumes indicating strong comeback by bulls.
The stock is well placed above its important moving averages of 100 and 200-day SMA which signifies a strong up trend.
Since January 2021, the stock was consolidating within Rs 8,380-6,500 levels, however with last weekly close the stock has observed breakout on a closing basis indicating bullish sentiments.
The daily, weekly and monthly RSI continue to remain bullish along with positive crossover which supports upside momentum.