Nifty Index 50 has consolidated for far too long and now seems to be itching to create all time high. The lack of momentum though is a dampener and 15900 – 16000 range has acted has strong resistance
Now, here’s what I am looking at:
RSI is good representation of what has been happening. The sandwich between trendlines is simply not getting digested. Like I said earlier, it is clear that if Nifty reclaims parallel channel, buyers will win but drop below green trendline will give opportunity to sellers. As of now, I do not have any bias.
Thus, scenarios for the week ahead (highlighted as yellow box with black lines dissecting scenarios)…
|Scenario||Probability||Anticipated Price Action|
|Consolidation||High||Between 16000 and 15775|
|Downtrend||Low||If breach below 15775; to drop somewhere till 15600|
|Uptrend||Low||If breach above 16000; to rise somewhere till 16150|
At a global level, there seems to be quiet and peace everywhere. At a local level though, the impact of earnings can influence the swing either way. So, let’s see
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