NSEI closes higher for the 3rd day in a row
NIFTY 50 Index (NSEI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NSEI finished Thursday at 8641.45 gaining INR323.60 (3.89%).
Daily Candlestick Chart (NSEI as at Mar 26, 2020):
Thursday's trading range has been INR444.15 (5.26%), that's slightly below the last trading month's daily average range of INR482.84. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NSEI.
Prices are trading close to the key technical resistance level at 8883.00 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 8883.00 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NIFTY 50. Out of 278 times, NSEI closed higher 60.07% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.04% with an average market move of 0.28%.