nifty analysis

Aug21-W2: Uptrend almost over, Nifty to hang around this week (Aug9 to Aug13)?

My last week’s analysis was a case of right observation, wrong diagnosis. Yes, Nifty was range bound but expecting it to remain like this forever was a stupid call. Nifty broke the range to go in in uptrend with high momentum.

Now, here’s what I am looking at:

Nifty does have enough momentum to reach the top of red highlighted channel. However, law of moving averages is also at play here. Thus, I remain neutral on market.

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

ScenarioProbabilityAnticipated Price Action
ConsolidationMedBetween 16350 and 16150
DowntrendMedIf breach below 16150; to drop somewhere till 16000
UptrendMedIf breach above 16350; to rise somewhere till 16500

The liquidity forces continue to rule this uptrend. As long as inflation rates remain in check, there is no reason for money to exit stock markets.

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.

2 thoughts on “Aug21-W2: Uptrend almost over, Nifty to hang around this week (Aug9 to Aug13)?”

  1. Pingback: Aug21-W2: Rollover of bad trades can cause recovery

  2. Pingback: Aug21-W3: Nifty to rise slowly this week (Aug16 to Aug20)?

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