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Is it all over or still more Juice left in NIFTY?

NIFTY index Weekly Chart

On Friday NIFTY index settled at 12271.80 up by 1.53 percent on weekly basis. On weekly chart recently price has settled well above resistance line of a parallel channel with a partial gap suggesting that bulls are having upper hand. Price has been witnessing nice up trend and currently nifty is moving in CD leg of a bearish AB=CD pattern which gets completed at 12735.65.
14 period weekly RSI has recently placed a higher value than price made last top at 12103.05 in June this year. Higher value on RSI along with price making new high neglecting possibility of a bearish divergence on weekly basis.
Weekly MACD has been staying in bullish territory along with a bullish cross above its signal line favoring bullish momentum and suggesting that there is more juice left in current move and showing potential for completion of AB=CD pattern based on weekly chart.
However daily chart is showing lack of conviction and formed an identical shooting star on Friday. There is a tiny contradiction between weekly and daily chart. Weekly chart is still loaded with strong bullish momentum and showing potential for further upside.

Based on study of price and oscillators on weekly and daily chart areas of 12240 will remain crucial to watch out in next few sessions. Any failure of this level will result in a retest to 12100-12040 zones. Failure of 12000 seems very less likely where as failure of the same could result in failure of momentum on weekly chart and then a deeper correction could be imminent up to 11850 zones. Areas of 11700 will remain key support and failure of 11700 will invalidate complete bullish structure and then deeper correction towards 11000-10400 can’t be ruled out.
Currently resistance is placed at 12300-12320 zones and any sustained move above these levels will bring more confidence to bulls and then rally towards 12700 zones can be expected in coming days.
However, a short-lived correction up to 12100-12050 zones can’t be ruled out but stability above 12000 will maintain bullish scenario on both weekly as well as daily chart and 12700 can be the destination for current move. Areas of 12700-12750 seems potential reversal zones based on current charts but stability above 12750 for 2-3 sessions consecutively would help bulls to gain further confidence and then rally can lead up to 13000-13300 zones.
Open interest based Put call ratio of weekly option expiring on coming Thursday is standing at 1.65. It signals that most market participants are betting on a likely bearish trend going forward. For contrarians, it is a signal to go against the wind.
Based on Friday’s option data max pain level for weekly expiry is standing at near 12150 that suggests weekly expiry is likely to happen somewhere near 12150 zones. In case if market manages to hold above 12200 in week starting from December 23, then this max pain level can shift upward and market will continue moving up.

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