Nifty 50 IndexLong
Nifty50 analysis - BTFD
I've tried to an analysis of nifty based on certain observations, please go through the detailed post
Nifty so far seems to have respected the trendline support from covid lows on weekly timeframe or is basically respecting the channel. It has formed a Piercing Pattern candlestick on weekly time frame at bottom end of the channel support, which indicates a bullish reversal sign.
On Daily chart Nifty has been facing resistance from the trendline marked from Oct,2021 ATH (18604) which it previously tried to breakout during Aug & Sep 22 but failed to sustain above it and make a new high. However finally this resistance was taken out during Oct'22 and Nifty made a new recent ATH (18887)during De 2022. ON budget day, Nifty made a low of 17353.40 , which was also a sort of retest of the trendline resistance breakout.
Another observation is that Nifty after making a high in Oct 2021, corrected for about 12% in 43 session, this time also Nifty after making a new high in Dec, has shown a correction of about 8% in 43 days. The early sign of halt here shows that the correction might be over.
Nifty in its recent swing from Sept low to Dec high has rallied for about 2000 points and now showing a early sign of double bottom formation on Daily chart at important fibo zone / level i.e. 50 to 61.8% correction level
All in all, If market condition remains favourable - current chart formation suggest that there is possibility of falling channel and flag & pole breakout possible above 18265-18280 zone, which is a major resistance zone. Market may gain momentum above these level and potentially the major short covering could actually trigger as soon as budget day high (i.e. 17972.20) is taken out or to be safe side 17980 to 18000zone is taken out.
Please share your thoughts in comments about this analysis
Nifty so far seems to have respected the trendline support from covid lows on weekly timeframe or is basically respecting the channel. It has formed a Piercing Pattern candlestick on weekly time frame at bottom end of the channel support, which indicates a bullish reversal sign.
On Daily chart Nifty has been facing resistance from the trendline marked from Oct,2021 ATH (18604) which it previously tried to breakout during Aug & Sep 22 but failed to sustain above it and make a new high. However finally this resistance was taken out during Oct'22 and Nifty made a new recent ATH (18887)during De 2022. ON budget day, Nifty made a low of 17353.40 , which was also a sort of retest of the trendline resistance breakout.
Another observation is that Nifty after making a high in Oct 2021, corrected for about 12% in 43 session, this time also Nifty after making a new high in Dec, has shown a correction of about 8% in 43 days. The early sign of halt here shows that the correction might be over.
Nifty in its recent swing from Sept low to Dec high has rallied for about 2000 points and now showing a early sign of double bottom formation on Daily chart at important fibo zone / level i.e. 50 to 61.8% correction level
All in all, If market condition remains favourable - current chart formation suggest that there is possibility of falling channel and flag & pole breakout possible above 18265-18280 zone, which is a major resistance zone. Market may gain momentum above these level and potentially the major short covering could actually trigger as soon as budget day high (i.e. 17972.20) is taken out or to be safe side 17980 to 18000zone is taken out.
Please share your thoughts in comments about this analysis
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