Oct21W1 Nifty

Oct21-W1: Nifty to do a boring consolidation (Oct4 to Oct8)?

Exactly as written last week, Nifty cracked and kept cracking. The law of moving averages spares none and momentum indicators were really exhausted. The writing was actually very clear on the charts.  

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)

One might get tempted to say that the top is done. At least, I would love to say that since I have missed so much of the upside. However, the green rectangle of 17400 is an important horizontal support zone whose breach is essential before shouting out loud that Nifty would not be making any more highs soon. However, the past momentum will not let this happen so easily and recent downtrend will not let Nifty rise so easily. Therefore, it is a boring stalemate and we are now in a triangle.  

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

ScenarioAnticipated Price Action
ConsolidationBetween 17825 and 17300
DowntrendIf breach below 17300; to drop somewhere till 16750
UptrendIf breach above 17825; to rise somewhere till 18200

Dow Jones has been really struggling since a month now. If it does not deliver some good up-move soon, a lot of hell may break loose and the fire may spread till Nifty too.

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 “Oct21-W1: Nifty to do a boring consolidation (Oct4 to Oct8)?”

  1. Pingback: Oct21-W1: Letting the market forces decide strike selection

  2. Pingback: Oct21-W2: Nifty to do something in this channel but what? (oct 11 to 15)

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