Nifty Forms Rising Wedge Pattern With Negative Divergence, Resistance At 11630


Nifty traded in a narrow range today and has formed a rising wedge pattern combined with negative divergence in the daily charts. A rising wedge pattern with a negative divergence is an early sign that profit booking is taking place around the upper Bollinger band (11619 approx). In today’s trade, Nifty displayed ample signs of weakness, as the index saw a correction of 65 points in the first hour of trading and went on to make a low of 11547. Selling pressure was also witnessed around the day high of 11621 as Nifty closed 20 points below that level at 11582 approx. Call option buyers booked profits for the second day in a row. Major unwinding was noticed in the 11600 and 11700 strike call options. The nearest downside target for the index is around its 5 DEMA high (11545 approx). 

Stocks Under The Scanner
In today’s trade tech Mahindra shares rose 2.75%, while Dr. Reddy shares rose 2.36%. Tata Motors shares dropped 4.56% in the course of the day’s trade.



The Outlook for 24th August 2018
Nifty Chart Levels
In today’s trading, Nifty traded in a range of 65 points and closed 20 points below its day at 11582 approx. The index has formed a rising wedge pattern together with negative divergence in the daily charts which is a sign that Nifty is likely to face stiff resistance around its upper Bollinger band (11619 approx).The immediate downside target for Nifty is around its 5 DEMA high (11545 approx).



Bank Nifty Chart Levels
In today’s trading session, Bank Nifty closed 290 points below its opening price at 28027 approx. This is an early signal that sellers are active in the market. The index faces stiff resistance around its 5 DEMA high (28250 approx) in today’s trade and is likely to see a correction till its 15 DMA (27900 approx).







Large Cap & Mid Cap Gainers



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India’s benchmark Nifty traded in a narrow range today and has formed a rising wedge pattern combined with negative divergence in the daily charts. A rising wedge pattern with a negative divergence is an early sign that profit booking is taking place around the upper Bollinger band (11619 approx). In today’s trade, Nifty displayed ample signs of weakness, as the index saw a correction of 65 points in the first hour of trading and went on to make a low of 11547. Selling pressure was also witnessed around the day high of 11621 as Nifty closed 20 points below that level at 11582 approx. Call option buyers booked profits for the second day in a row. Major unwinding was noticed in the 11600 and 11700 strike call options. The nearest downside target for the index is around its 5 DEMA high (11545 approx). 

Stocks Under The Scanner
In today’s trade tech Mahindra shares rose 2.75%, while Dr. Reddy shares rose 2.36%. Tata Motors shares dropped 4.56% in the course of the day’s trade.



The Outlook for 24th August 2018
Nifty Chart Levels
In today’s trading, Nifty traded in a range of 65 points and closed 20 points below its day at 11582 approx. The index has formed a rising wedge pattern together with negative divergence in the daily charts which is a sign that Nifty is likely to face stiff resistance around its upper Bollinger band (11619 approx).The immediate downside target for Nifty is around its 5 DEMA high (11545 approx).



Bank Nifty Chart Levels
In today’s trading session, Bank Nifty closed 290 points below its opening price at 28027 approx. This is an early signal that sellers are active in the market. The index faces stiff resistance around its 5 DEMA high (28250 approx) in today’s trade and is likely to see a correction till its 15 DMA (27900 approx).







Large Cap & Mid Cap Gainers



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