Intraday View of CNX Nifty-50 Index

CNX Nifty-50, the benchmark index of the Indian Stock Market, has been on a perplexed stride lately. Just when an investor thinks that this might be the end of this bewildering move, Nifty makes a move that is further disappointing. An intraday swing of almost 100 points was observed on Oct 21, 2016, when Nifty started off the day from above 8700 levels, hit the day’s low near 8652 and then skyrocketed back towards the levels of 8700. Such a price action may be heavenly for an intraday trader but may not be equally appreciated by an investor, who is unable to get a grip over the ongoing trend of CNX Nifty-50. The confusion, however, might end as the levels at which the nifty is poised at the moment proves that we might see the onset of a definite trend.

From the aforementioned chart it can be observed that the index has been taking the support near the levels of 8660-8670, were the EMAs of 50 period and 100 period have been placed. These levels, thus, may act as a very important support for the index in the future. In the last two candles, the index showed a bold up-move by breaching the 200 period EMA with reasonably good volume.

This may mark the onset of a positive tend in Nifty as multiple factors have been favouring the same:-

Nifty is on the verge of a positive crossover on MACD above the Histogram

A Positive crossover of Super-Trend (14-2) has been observed

RSI is hovering above 50 (57 to be exact)

Positive crossover between EMA 50 & EMA 100

Owing to this, a positive outlook can be set in CNX Nifty-50 index. Important levels to watch would be as follows:-

Support 1: 8675-8680 (EMA 200, S1 level of Standard Pivot, Previous Day Low)

Support 2: 8660-8665 (EMA 50 & EMA 100)

Support 3: 8653 (S2 level of Standard Pivot)

(Note: - A break below these levels may take the price towards the levels of 8600)

Resistance 1: 8700 (Pivot level of Standard Pivot)

Resistance 2: 8725-8727 (R1 level of Standard Pivot, Previous Day High)

Resistance 3: 8750 (R2 level of Standard Pivot)

(Note: - A break above these levels may take the price towards the levels of 8800)