Nifty is creating a value area, moving above it is necessary...

17 Jan 2020

The index created a new high this week, failing to close above it. The small body candles are creating a value area at the highs, it’s very important for Nifty to move above this value area to establish strength, the rally is fueled by small and mid caps, Nifty should support this overall movement. While the RSI is displaying divergence, the major momentum doesn't seems to be affected. MACD is bullish above zero line with a minor divergence. A move above the value area 12400 shall push Nifty to 12545 & 12930 levels (this is unchartered territory) 12170 levels will serve as strong support to the index below which it can be dragged to 12000 levels, though 12170 is a very strong support.