NIFTY 2019 Yearly Analysis Part 1

NSE:NIFTY   Nifty 50 Index
Part 1 deals with pivot width and two year pivot relationship to estimate whether this year will be a trending market or bracketed.

1.) Analysis on the basis of Standard Floor Pivots

Central Pivot Range (2019) is abnormally narrow, suggesting a trending market, but not sure of the direction yet.
CPR of 2018 is way below that of 2019, suggesting a bullish market,
Till now, the market just hovered around CPR of 2019, so nothing conclusive can be deducted. We will discuss this more in Part 2.

2.) Analysis on the basis of Camarilla pivots .

The third layer(H3 and L3) of Camarilla pivots are used to determine pivot widths.
While the pivot width of 2018 was considerably wide, the pivot width of 2019 is neither abnormally wide nor abnormally narrow, leaving us devoid of any understanding of whether the market will be trending or bracketed.

The third layer of 2019 is overlapping above that of 2018, which by textbook definition, must help us deduce that year 2019 will be moderately bullish .

My view:
(Disclaimer: I have started this recently. Please take my advice with a grain of salt.)

Two months have passed by and the market is still hovering around CPR . Also, from the graph, i have drawn visual resistance and support lines to help us know whether breakout is going to occur or not.

I would like to see CPR in few months acting as either a support or resistance, so that we can estimate the direction of market.

I personally believe that abnormally normal CPR means a trending NIFTY is soon going to happen. Whenever the visual resistance or support is broken, I wlll look for the strength in the breakout, as the direction decided from breakout is going to last for entire year.

In the next part,I'll discuss the key Standard Floor pivot and Camarilla pivots to look out for this year.


Constructive criticism appreciated.
Thank you.

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