NIFTY expected move:
NIFTY
We have some major economic and geo-political reasons to keep in mind
1. Weaking world currencies against USD (I am expecting a 10Y USD Bond yield to go double to 7bps (2006 levels) from the current 3.5bps - Actually, it started rising from 0.5bps.
2. Financial and Economical weaker backdrop of Europe given Russia- Ukraine scenario.
3. Higher and rising inflation worldwide.
4. Reserve Bank's monetary tightening through interest rate hikes will hit industrial performance badly. Sooner or later it will show up. This will translate into lower earnings which will ultimately get reflected in Equities.
Coming to Price Action, we have a confluence of the following two:
1. A weird HnS pattern that has a mirror TGT of 4% downside from the neckline (17,350-17,400) - TGT 16,600
2. 2H TF ABCD Extension's (Blue in color on the chart) @ x2 stand at 16,600
Therefore, the market has a line in the sand @ (17,350 - 17,400) levels.
The market may consolidate around these levels (+/-) 1% for 2-3 days and then it would leap.
NIFTY
We have some major economic and geo-political reasons to keep in mind
1. Weaking world currencies against USD (I am expecting a 10Y USD Bond yield to go double to 7bps (2006 levels) from the current 3.5bps - Actually, it started rising from 0.5bps.
2. Financial and Economical weaker backdrop of Europe given Russia- Ukraine scenario.
3. Higher and rising inflation worldwide.
4. Reserve Bank's monetary tightening through interest rate hikes will hit industrial performance badly. Sooner or later it will show up. This will translate into lower earnings which will ultimately get reflected in Equities.
Coming to Price Action, we have a confluence of the following two:
1. A weird HnS pattern that has a mirror TGT of 4% downside from the neckline (17,350-17,400) - TGT 16,600
2. 2H TF ABCD Extension's (Blue in color on the chart) @ x2 stand at 16,600
Therefore, the market has a line in the sand @ (17,350 - 17,400) levels.
The market may consolidate around these levels (+/-) 1% for 2-3 days and then it would leap.