As stated last week, the drop below green trendline (no more visible in this chart now) will lead Nifty index 50 to 15600. But the rebound from that level has been quite strong.
Now, here’s what I am looking at:
I personally do not like the drawings. There is too much clutter but at the same time, it all seems important to me. Nifty index 50 slipped from an upward channel and found itself stuck in a downward channel. The blue trendline now looks like a major support. However, breaching all time high needs momentum which has been lacking for past 3-4 weeks now. Thus, I remain neutral on market.
Thus, scenarios for the week ahead (highlighted as yellow box with black lines dissecting scenarios)…
|Scenario||Probability||Anticipated Price Action|
|Consolidation||High||Between 15975 and 15725|
|Downtrend||Low||If breach below 15725; to drop somewhere till 15450|
|Uptrend||Med||If breach above 15975; to rise somewhere till 16225|
The Fed has a complex decision to make. Inflation is rising steeply in US. If Fed decides to raise rates, it will trigger a fall in rest of the world markets. So, let’s see
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.