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Nifty, Sensex set for 10% rally? Tech charts suggest so

Avdhut Bagkar/Mumbai 11 Jan 19 | 01:46 PM

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The current market scenario indicates that soon benchmark indices Nifty50 and BSE Sensex will witness crossover of three moving averages (in a closer distance) - 50-day moving average (DMA), 100-DMA and 200-DMA on the daily chart. The same scenario has been witnessed four times in the entire history of both the indices. The said convergence indicates a strong rally of around 10 per cent as per the table mentioned below.

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Nifty 50Approximate dateClosing levelHighDate% change14-Aug-125240611129-Jan-1314.255-Aug-135542511828-Aug-13-8.283-Nov-13631791194-Mar-1530.7321-Feb-1789071176028-Aug-1824.26

BSE SensexApproximate dateClosing levelHighDate% change3-Aug-12171792020329-Jan-1314.9716-Aug-13185981744828-Aug-13-6.5922-Oct-1320864300244-Mar-1530.5122-Feb-17288643898929-Aug-1825.97

This type of movement helps traders and investors gauge the rising / falling trend with certain clarity. The moving averages have strong relevance in trading as it helps to restrict losses, build a view on the market and stay patient to gain greater returns.

Nifty 50: The index faces stiff resistance of 100-DMA, currently located at 10,860 as per the chart. The Nifty50 has reversed thrice in last one month from the said average. However, on the other end, 50-DMA supports the reversal with buying emerging at 10,600 and leading up to 10,650 level. The 200-DMA is acting as mid-average between the other two averages. At the current level of 10,775, all the three averages - 50-DMA, 100-DMA and 200-DMA are on the verge of making positive/golden crossover signaling a strong upside rally, chart suggests. CLICK HERE TO VIEW CHART

BSE Sensex: The index has crossed the resistance of 100-DMA recently; however, it failed to hold the follow-up buying. It is currently trading around 35,940 level, a little below its 100-DMA of 36,010 but the 50-DMA acts as the support level, which is rising above 35,400 level every new session. The 200-DMA is located at 35,730, its immediate support level. Soon, these averages will converge to highlight the bullishness in the index, chart suggests.

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Sensex

Company Price Gain (%)
Reliance Inds.1,182.954.34
Kotak Mah. Bank1,237.351.41
HCL Technologies964.501.02
Adani Ports398.600.99
Asian Paints1,401.300.85

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