From The Economic Times · ET Bureau · · 1m 20s
Nifty Rebound Near After 8-Week Losing Streak
Nifty technical rebound possible as 8-week losing streak ends.
In brief
Nifty technical rebound possible as 8-week losing streak ends. Nifty may rebound to 23,000 after oversold conditions and support zones. Originally reported by The Economic Times.
Nifty extends 8-week losing streak
Nifty extended its losing streak to a record eighth consecutive week, moving closer to a crucial long-term support zone around 22,000, 22,600.
“Nifty extended its losing streak to a record eighth consecutive week”
Technical support at 22,000, 22,600
The index remains under pressure but oversold conditions and support from long-term moving averages and trend lines raise the possibility of a technical rebound.
“oversold conditions and support from long-term moving averages and trend lines”
Nifty strategy for rebound
Nifty has moved closer to the crucial 22,000, 22,200 support zone, which coincides with its 200-week EMA and the lower boundary of the multi-year consolidation range.
“Nifty has moved closer to the crucial 22,000, 22,200 support zone”
Oversold momentum increases rebound chance
Oversold momentum and breadth readings, coupled with historically favourable October seasonality, increase the probability of a recovery.
“Oversold momentum and breadth readings, coupled with historically favourable October seasonality”
Nifty futures trading strategy
Traders can buy Nifty Futures for an upside target of 23,000, 23,300, with a stop loss below 22,000.
“Traders can buy Nifty Futures for an upside target of 23,000, 23,300”
Nifty technical analysis by Asit C Mehta
ROHAN SHAH, SENIOR TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT INTERMEDIATES.
“ROHAN SHAH, SENIOR TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT INTERMEDIATES”
Nifty rebound target
The immediate bias remains down, but oscillators on the weekly and daily charts have reached extremely oversold territory after the sharp decline.
“oscillators on the weekly and daily charts have reached extremely oversold territory”
What to remember
Nifty may rebound to 23,000 after oversold conditions and support zones.
