Since our last fortnightly report (published on 18th April 2019), Nifty has been largely range bound between 11800 and 11550 range. In our last report, we had mentioned that 11550 is an important support for Nifty and till the time this support is not broken decisively and Nifty gives a weekly close below 11550, bulls will dominate the power tussle. Till now, bulls have managed to hold this support, however, they have yet not been able to clear major hurdle of 11900 levels.
The short and medium term trend for Nifty is sideways, it is trading between 11550 and11800 (a mere 250 points range move), since first week of April, a sideways consolidation of 5‐weeks. It continued to face resistance from the supply line of the “Up Sloping Trend Channels”, connecting the lows of 10004 and 10585 (See chart). The daily RSI continued to display negative divergence and trading below the support of 60 (currently @ 57). On daily charts, MACD is approaching towards 0‐line.
Now, 11550 has become a crucial support and till the time this level is not breached, despite having “Negative Divergence” on daily RSI and MACD slipping below 0‐line, Nifty will not have any bearish implications and it might trade sideways (between 11550 and 11800), as it did in the past. There are multiple resistances working in the range of 10800 and 10900 (shown in charts as extension levels of current move from the lows of 10585). A decisive break of 11900 will see the bulls once again taking full control and then Nifty should rally towards 12100+ levels.