What I said last week was ‘Knowing the target is anyone’ guess for the time being, since Nifty may make a double bottom near 16800ish and strive for a reversal’. I was almost right as the reversal happened near 16900 level.
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)
Let me write facts. Nifty is exactly at 21 EMA and 13-day stochastic is overbought. I usually use this combination to say that Nifty’s mean reversion is done and the previous trend shall resume now. In this case, the downtrend should continue. However, there is a probability for Nifty to create a fake uptrend before it does so. Therefore, it all depends on this triangle type pattern we are in currently. If we break and sustain above red line, we go up else go down. Let’s see
Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…
|Scenario||Anticipated Price Action|
|Consolidation||Between 17850 and 16950|
|Downtrend||If breach below 16950; to drop somewhere till 16650|
|Uptrend||If breach above 17850; to rise somewhere till 18225|
Omnicron scare is also almost at the middle. Let’s hope the cases go down but that does not necessarily mean market will go up, though the vice versa is a different story.
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.