Nifty Might Get Driven By Short-Term Pullback Towards 10,570
In the beginning of this week, the experts are of the view that the benchmark indices have extended the ongoing pessimism and the bears tried to break the recent swing low of 10,276. But, it is believed that the bulls have maintained to defend this level. For this reason, thereafter index ultimately slipped into a consolidation.
The technical expert informed that if you closely look the daily chart, and take a slightly contra view on index then you can observe that the Nifty index will see a short-term pullback from current level.
You can see the Higher Top Higher Bottom formation on weekly chart, till the time Nifty is trading above 10,033.35. While watching the chart, you will see that RSI (14), has signaled an oversold condition after the formation of a bearish divergence. Apart from this, on a weekly line chart, Nifty precisely closed near its previous resistance zone of November 3, 2017 in the last two weeks.
For this reason, technical analysts are tracking Friday’s closing as any close near or above 10,450 indicate that the index is poised for a sharp bounce. Here you can see Nifty to rally towards 10,575 and 10,640 levels respectively.
Looking at the other side, if Nifty breaks and closes below 10,276, the above hypothesis will be negated and in that case there is no chance that testing the swing low of 10,033.35 can be ruled out.
The analysts informed that the expected pullback will be short term in nature and they do not advise traders to go aggressive long in Nifty.