NSEASI Short Term Potentials

Chart Source: Amibroker                                                             NSEASI Daily chart

Market Sentiment:                                                                       Actionable Points

Long term – Bearish                                                                        Intermediate Resistance: 31,256.16 bps
Mid-term – Neutral                                                                         Support: 28,053.16 bps
Short term – Bullish (Mid-accumulation phase)

Technical Profiling:

The NSEASI continues to trend lower at a weak price momentum. The above daily reflects that the index continue to find support at the lower Bollinger band. Also reference my previous week’s technical outlook on the impending head and shoulder pattern

Technical Implication:

Downward momentum loosing steam as the uptrend is building momentum, a trend towards the Head and Shoulder neckline at 31,256.16 bps is anticipated in the near term. A breach above the neckline would indicate shift in medium term sentiment to the upside and rally in speculative driven equities that has relative strength. 

*Mid-accumulation phase: Bearish forces become more neutral as buyers methodically accumulates shares, but still no signs of upward momentum develop. Fundamentals remain negative