14 Mar ’24 — Nifty may be forming a lower high, stance neutral
Nifty Analysis - Stance Neutral ➡️
Recap from yesterday: “From the recent top of 48161, BN is falling, but yet to make a lower low or lower high. Unless the 2nd leg starts, we wouldn’t know with clarity what it has in mind. To go bearish, we need to fall below 46176 another 800pts away.”
4mts chart
The day did not go as planned, firstly the selling pressure came to a full stop. Secondly, the short covering helped Nifty breach the resistance of 22051. Nifty had a swing range of 287 points today and because it took out a crucial SR, we are switching the stance from bearish to neutral. I was totally not in agreement with the trades on NiftyIT, that sector alone ended up +1.98% today. The impact of Adani stocks was standing out today, a variance of 0.22% with Sensex should prove a point.
We are back to the same situation where the weak hands are holding the shorts. The first blink of green they run for cover creating a fake momentum. And then they re-enter the shorts at a lower level losing more points.
If you look at the higher time frame, today’s price moves might be between 38.2 to 50% Fibonacci retracement levels and what might have formed could be a lower high. Again we are not quite sure if the technical analysis will work tomorrow as the markets will be keenly watching for the electoral bonds data. We would like to re-enter the bearish position below 22051 and the bullish position above 22295.
63mts chart
Recap from yesterday: “From the recent top of 48161, BN is falling, but yet to make a lower low or lower high. Unless the 2nd leg starts, we wouldn’t know with clarity what it has in mind. To go bearish, we need to fall below 46176 another 800pts away.”
4mts chart
The day did not go as planned, firstly the selling pressure came to a full stop. Secondly, the short covering helped Nifty breach the resistance of 22051. Nifty had a swing range of 287 points today and because it took out a crucial SR, we are switching the stance from bearish to neutral. I was totally not in agreement with the trades on NiftyIT, that sector alone ended up +1.98% today. The impact of Adani stocks was standing out today, a variance of 0.22% with Sensex should prove a point.
We are back to the same situation where the weak hands are holding the shorts. The first blink of green they run for cover creating a fake momentum. And then they re-enter the shorts at a lower level losing more points.
If you look at the higher time frame, today’s price moves might be between 38.2 to 50% Fibonacci retracement levels and what might have formed could be a lower high. Again we are not quite sure if the technical analysis will work tomorrow as the markets will be keenly watching for the electoral bonds data. We would like to re-enter the bearish position below 22051 and the bullish position above 22295.
63mts chart
