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)…
|Scenario||Probability||Anticipated Price Action|
|Consolidation||Med||Between 16350 and 16150|
|Downtrend||Med||If breach below 16150; to drop somewhere till 16000|
|Uptrend||Med||If 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.