nifty aug end

Aug21-W3: Nifty to remain range-bound this week (Aug23 to Aug27)?

There are times when I surprise myself with my predictions. Last week was one of them as I wrote about Nifty to face resistance around 16675. Though it would have been a better prediction had Nifty touched mid of my parallel channel but who am I to dictate how market should behave.

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)

While last Wednesday saw a gap up opening and closing as a fat red candle, Friday was a gap down opening with closing as a green candle. This is too much to take and I expect market to remain range bound for the coming few days. Alternatively, Nifty may touch lower end of the parallel channel to take support. But I would be surprised if RSI breaks the support line.

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

ScenarioProbabilityAnticipated Price Action
ConsolidationHighBetween 16650 and 16150
DowntrendMediumIf breach below 16150; to drop somewhere till 15950
UptrendLowIf breach above 16650; to rise somewhere till 16875

It is ironical that such big trending news on Afghanistan has no impact on global financial markets. I hope that stays the case for future as well. However, uncertainty on tapering by US is not cool. This will make market volatile until a clear direction emerges.

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.

1 thought on “Aug21-W3: Nifty to remain range-bound this week (Aug23 to Aug27)?”

  1. Pingback: Sep21-W1: Nifty to bounce between parallel channel this week (Aug30 to Sep3)?

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