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NSEI breaks below 20-day moving average


Technical Analysis Report for NSEI - May 17, 2018 [1 min read]
Highlights
NSEI dominated by bears dragging the market lower throughout the day
NSEI breaks below 20-day moving average
NSEI closes lower for the 3rd day in a row
NSEI ends the day on a bearish note closing near the low of the day
NSEI runs into sellers again around 10777.25
TQ Sentiment
Technical Forecast:
Overview

Moving lower for the 3rd day in a row, NSEI finished Thursday at 10682.70 losing INR58.40 (-0.54%). Today's closing price of 10682.70 marks the lowest close since May 4th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 10699.70, the index confirms its breakout through the previous session's low having traded INR35.20 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.

Daily chart for NSEI
Volatility

Thursday's trading range was INR112.75 (1.05%), that's far above last trading month's daily average range of INR81.28. Weekly volatility is also higher, being above the markets average with the monthly volatility being below average.

Price Action

In spite of a strong opening the stock index closed below the prior day's open and close, forming a bearish Engulfing Candle.

Support/Resistance

After having been unable to move above 10790.45 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 10777.25.

Trend

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. NSEI broke below the 20-day moving average at 10684.73 today for the first time since April 4th.

Order Flow

Selling could speed up should prices move below the close-by swing low at 10601.60 where further sell stops might get triggered. As prices are trading close to May's low at 10601.60, downside momentum could accelerate should the index mark new lows for the month.

Conclusion

While classical technical analysis indicates a bearish sentiment for the next trading day, our quantitative statistics show a different picture being neutral.

Report Market Conditions
ConditionForecastDirectionWinAvgWorstBest
Bearish Break through SMA 20 TQ Pro Members Only
High close to previous High TQ Pro Members Only
Closed below last periods low TQ Pro Members Only
3 Consecutive Lower Closes TQ Pro Members Only
Decisive Down Move TQ Pro Members Only
More market conditions identified for TQ Pro members...
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