23 Feb ’24 — Indices take a pause - yet again. Only to jump up?

NSE:NIFTY   Nifty 50 Index
Nifty Analysis - Stance Bullish ⬆️
Recap from yesterday: “As soon as the 22051 resistance gave away, we had to change our stance from neutral to bullish. We would now like to see how higher the markets can go, we are assuming the momentum may not take us to 22700 for the monthly expiry.”

4mts chart
All 3 indices - Nifty50, BankNifty, and NiftyIT- were stuck in a tight range today, something that we usually see after a fast & furious move. The experts usually call it a flag pattern where a slight downward day occurs after a steaming UP day. Technically a pause also made sense - markets may be recalibrating between the short covering yesterday and a possible long build-up for next week. As long as the global macros remain positive, Nifty should remain charged up and ready to roll.
The indices staying flat would have ensured the straddlers would have made some money today, BN was quite shaky though - most likely it would have ended up hitting both stop losses. Nifty was far more stable today.
The flag pattern is quite prominent on the higher timeframe. We are not suggesting that all “roads lead to Rome theory” i.e. everything is bullish, but the probability of things going up seems higher than cutting through the supports of 22051 & 21913. You know us, the moment the supports are broken, we will exit the bullish position at a loss and go neutral. Till then we are going to keep looking upwards.

63mts chart


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.