“Morning Star” on NIFTY- a signal to buy?

Nifty (7563) Target (7675)

 

In line with expectation, Nifty closed with a weekly gain of 141 points.  Weekly candlestick shows a Morning Star pattern.  It traded range bound during the week and then rallied on Friday.  In a month’s time Nifty witnessed a huge correction of 731 points from the recent high of 7072 and over the last 3 months bounced back 334 points from the level of 7250.  Long term chart shows that Nifty is moving volatile within a broad falling channel of around 1000-1100 points for a year now.  With the recent fall, the correction of 1000-1100 was over and weekly candlestick shows a morning start at lower end of channel.  14 days RSI showed smart money entry at lower level by positive divergence.  Now daily MACD has also given a buy signal.

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