NSEI closes higher for the 2nd day in a row
NIFTY 50 Index (NSEI) Technical Analysis Report for Oct 19, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NSEI ended Monday at 11873.05 gaining INR110.60 (0.94%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NSEI as at Oct 19, 2020):
Monday's trading range has been INR77.85 (0.66%), that's far below the last trading month's daily average range of INR164.26. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NSEI.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on October 1st, NSEI actually gained 0.76% on the following trading day.
Prices are trading close to the key technical support level at 11794.25 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 12025.45 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for NIFTY 50. Out of 199 times, NSEI closed higher 61.81% 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 59.80% with an average market move of 0.62%.