What I said last week was that the setup was good for a significant downside. I was anticipating that Nifty will breach 17000 and coincidentally, this is what happened. There are times when Goddess Saraswati blesses my keyboard. Hope the blessings continue.
Now the following is my analysis for coming week based on what I am looking at (You may want to open image in new tab or save it for better view)
I continue to see 2 downward sloping parallel channels. I will continue to remain bearish until Nifty is able to break out from both of them. Support lines for both channels can be seen interjecting around 16525 level. Ideally, Nifty should not go below this week but at the worst, Nifty may go till 16200 also.
Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…
|Scenario||Anticipated Price Action|
|Consolidation||Between 17425 and 16800|
|Downtrend||If breach below 16800; to drop somewhere till 16200|
|Uptrend||If breach above 17425; to rise somewhere till 17950|
Nobody is able to tame inflation. Let’s eat wheat before we have to switch to corn.
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.