Overbought Nifty forms an indecisive Doji, indicating a lull in momentum.

New Delhi’s Nifty50 index formed a recent high for the third session in a row on Monday, according to Bloomberg. An “Doji” candle formed on the daily chart of the 50-pack index, indicating indecision amongst market participants at report highs. 

But even though there is no clear sign of a weak spot yet, the fact that the index can fluctuate between buying and selling in overbought territory has raised the possibility of a slowdown in the upward momentum of the index. 

There was a gain of 54.20 factors or 0.31 percent for the day as the index closed at 17,379. The 14-day relative strength index (RSI) was at the 83-point mark on Monday. RSI levels above 80 indicate an overbought condition in a rising market.

If the Nifty50 falls below 17,345 points on Tuesday, the market may experience some weakness. Momentum oscillators, according to Mazhar Mohammad of Chartviewindia.in, have continued to show catastrophic divergences. 

According to Mohammad, if the Nifty50 can stay above the 17,345 level, it will be able to reach 17,500-600. 

Market is currently moving Sideways 

After six sessions, the index generated its next high-low configuration, causing the aids to shift more than before.

The indicator’s support levels have widened to 17,300-17,200, and any dip within that range would function as a new purchase opportunity. So, if this range holds, the index could continue to rise towards 17,500,” Rohit Singre, Senior Technical Analyst at LKP Securities, explained. 

According to Sharekhan stockbroker Gaurav Ratnaparkhi, while the market is moving sideways, the overbought momentum indicator on the hourly chart is cooling off slightly.

The 20-hour moving average intersects with the lower end of a rising channel at 17,300, providing significant short-term support. As long as it trades above 17,300, it is expected to remain positive in the short term. According to him, the index could reach 17,500 to 17,630 in the near future.


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