What I said last week was ‘The momentum is so strong that I anticipate Nifty to drop somewhere till mid line of purple or halt somewhere in between. Subsequently, the market should reverse and fly till somewhere between 5 EMA and 21 EMA.’ I couldn’t be more right, can I?
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)
Nifty as of now is playing with every trader’s mind. It is in a difficult spot where making predictions is very tough. There needs to be some more price action for making more concrete recommendations. The downtrend should continue as long as price is below the green support line (the line’s previous touch-points were 28Jul21 and 22Apr21). Knowing the target is anyone’ guess for the time being, since Nifty may make a double bottom near 16800ish and strive for a reversal.
Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…
|Scenario||Anticipated Price Action|
|Consolidation||Between 17550 and 16850|
|Downtrend||If breach below 16850; to drop somewhere till 16150|
|Uptrend||If breach above 17550; to rise somewhere till 18200|
RBI is expected to announce rates, guidance and all on Wednesday. The fall of interest rates may end now. I guess I should take some loan before the party ends.
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for