Jan22 W2

Jan22-W2: Nifty to create double top? (Jan3 to Jan7)

What I said last week was ‘Even if Nifty manages to break above red line, it may not be possible to maintain uptrend.’ I couldn’t be more wrong as Nifty went all greens blazing in a solid breakout above 17650.

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)

This week is expected to swing both ways. I see Nifty as trapped between my red and green rectangles. It may not be possible to maintain uptrend. There is high probability that Nifty may break its recent high above 17945 but only to create a double top and correct subsequently.

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

ScenarioAnticipated Price Action
ConsolidationBetween 18100 and 17525
DowntrendIf breach below 17525; to drop somewhere till 17050
UptrendIf breach above 18100; to rise somewhere till 18500

I am really scared this time from Covid as I am not taking enough precautions. Is Nifty too behaving in same way?

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.

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