nifty analysis

Aug21-W3: Nifty to rise slowly this week (Aug16 to Aug20)?

Like I was anticipating, Nifty did have momentum. Nifty did reach top of my red rectangle. But what Nifty did next was not anticipated. It broke above the rectangle and ended Friday with a big green candle.

Now, here’s what I am looking at:

This is a strong uptrend. It would not allow market to go low. RSI too does not have any divergence. Thus, market may continue to move up or stay around this height. The mid or top of parallel channel should be the target.  

Scenarios for the week ahead (highlighted as yellow box with black lines dissecting scenarios)…

ScenarioProbabilityAnticipated Price Action
ConsolidationMedBetween 16675 and 16350
DowntrendLowIf breach below 16350; to drop somewhere till 16050
UptrendMedIf breach above 16675; to rise somewhere till 16925

Fundamentally, there is still no news that can pause this juggernaut of a market. The world is living in euphoria. It remains to be seen how long this lasts.

DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.