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Nifty continues to trade between the opening and closing of HeikenAshi candles of 26th September’22 marked in red on the chart. Weekly RSI at 51 does not indicate any directional bias which is confirmed by ADX, which measures trend strength and ATR which is a measure of volatility moving down. The direction of ADX and ATR are indicated in the chart.
Weekly Analysis 14thOctober
Chart Courtesy: Investing.com
Nifty continues to be in wait and watch mode as the entire price action is confined within the open-close range of 26th September’. The Vix came down on Friday by 10%, which is required for the market to move up. As the Vix is a measure of fear in the market and is derived from the option prices, a reduction in Vix favors option sellers as the option prices come down. Though Nifty opened gap-up on Friday but it was not able to sustain on the upside and closed at lowest point of the day. Also, the weekly candle for the week ending 14th October’22 is inside candle of the week ending 7th October’22, which also suggests volatility compression.
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