Like I was anticipating, Nifty did have momentum. Nifty did reach top of my red rectangle. But what Nifty did next was not anticipated. It broke above the rectangle and ended Friday with a big green candle.
Now, here’s what I am looking at:
This is a strong uptrend. It would not allow market to go low. RSI too does not have any divergence. Thus, market may continue to move up or stay around this height. The mid or top of parallel channel should be the target.
Scenarios for the week ahead (highlighted as yellow box with black lines dissecting scenarios)…
|Scenario||Probability||Anticipated Price Action|
|Consolidation||Med||Between 16675 and 16350|
|Downtrend||Low||If breach below 16350; to drop somewhere till 16050|
|Uptrend||Med||If breach above 16675; to rise somewhere till 16925|
Fundamentally, there is still no news that can pause this juggernaut of a market. The world is living in euphoria. It remains to be seen how long this lasts.
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.