Last week’s prediction didn’t exactly go my way and Nifty went into a mild bullish mode. It was not exactly a surprise since Nifty continues to be above my green rectangle around 17400 level. Until that rectangle is cleanly broken, the bias is always going to be up
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)
Nifty is sitting nice and tight exactly around the mid line of the black parallel channel. I have no clue what it would want to do now but if I have to make a guess, I would be bearish. The reason is that Nifty is at a double top with stochastic making a divergence type formation. A break below mid-line will take Nifty straight to the lower end of parallel channel.
Scenarios for the week ahead (highlighted as yellow box with red and greeen lines dissecting scenarios)…
|Scenario||Anticipated Price Action|
|Consolidation||Between 18075 and 17625|
|Downtrend||If breach below 17625; to drop somewhere till 17400|
|Uptrend||If breach above 18100; to rise somewhere till 18300|
India is running out of coal. Meanwhile, oil has breached the $80 mark and even $itself is nearing the 80 mark. WINTER IS COMING!!
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.