NIFTY IT - The index has undergone a sharp 38% correction from its ATH, followed by a strong reaction from the 28,300 demand zone, where buyers stepped in and reversed the move.
Currently, price is trading around the 31,000 zone, which is a crucial level as it previously acted as a strong resistance. Now, this zone is being tested as a potential support, indicating early signs of strength.
On the lower time frame (daily), the structure is showing signs of recovery with higher lows forming. However, for a confirmed bullish continuation, the index needs to reclaim and sustain above key EMAs on the daily chart, along with acceptance above this zone.
A consolidation near current levels (30,500–31,500) would be a healthy sign, allowing the index to build a base before attempting the next leg of the move.
Key Observations:
• 38% correction from ATH
• Strong demand reaction near 28,300
• Reclaim attempt of 31,000 key level
• LTF recovery, HTF confirmation awaited
Conclusion:
If the index holds above 31,000 and sustains above key EMAs, there is a good probability of continuation towards higher levels.
Failure to hold may lead to further range-bound or weak price action.
Keep a close watch on NIFTY IT.
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📌 For learning and educational purposes only, not a recommendation. Please consult your financial advisor before investing.
Currently, price is trading around the 31,000 zone, which is a crucial level as it previously acted as a strong resistance. Now, this zone is being tested as a potential support, indicating early signs of strength.
On the lower time frame (daily), the structure is showing signs of recovery with higher lows forming. However, for a confirmed bullish continuation, the index needs to reclaim and sustain above key EMAs on the daily chart, along with acceptance above this zone.
A consolidation near current levels (30,500–31,500) would be a healthy sign, allowing the index to build a base before attempting the next leg of the move.
Key Observations:
• 38% correction from ATH
• Strong demand reaction near 28,300
• Reclaim attempt of 31,000 key level
• LTF recovery, HTF confirmation awaited
Conclusion:
If the index holds above 31,000 and sustains above key EMAs, there is a good probability of continuation towards higher levels.
Failure to hold may lead to further range-bound or weak price action.
Keep a close watch on NIFTY IT.
✅ If you like my analysis, please follow me here as a token of appreciation :)
in.tradingview.com/u/SatpalS/
📌 For learning and educational purposes only, not a recommendation. Please consult your financial advisor before investing.
Note
NIFTY IT is sustaining above 31000 - important level.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.