Nifty has ended the year at a very crucial juncture and next few days or weeks would define its way forward in 2023.
Fibonacci Analysis: -
If one connects the Sep end lows of 16747 and current Dec highs of 18887, Nifty retraced to its 50% level of 17800 and found support there. Similarly for the current downmove in Dec from 18887 to 17774, it found resistance at 38.2% level of 18200 and could not sustain above it on the last day of trading.
Moreover if one checks the Fib from current swing low of 17098 to 18887 then 18200 (38.2%) and 17800 (61.8%) come out to be important levels and Nifty has respected that.
Trendline Analysis: -
Joining the swing lows of Jun end 15183, Sep end of 16747 we get a trendline which Nifty broke below and then is trying to get back above that. On Thu, it closed above it but Fri it gave up its gains and is resting just below or inside the line.
Similarly for the swing highs of Dec 18696 and 18473 the trendline got broken and is currently being retested.
All in all one can see that Nifty is at a crucial juncture and if the current lows of 18050 and 18000 get broken in the next week then it will go towards the 61.8% retracement of 17564 and 17437 would be the ultimate target. It might get support at 17650 as well.
Well in the short term Nifty also is forming a Rising Wedge pattern. So if that breaks then bearishness might ensue.
If it climbs above 18200 and sustains then the Swing High of current move 18463 will be tested and Nifty will be bullish in the coming months.
Fibonacci Analysis: -
If one connects the Sep end lows of 16747 and current Dec highs of 18887, Nifty retraced to its 50% level of 17800 and found support there. Similarly for the current downmove in Dec from 18887 to 17774, it found resistance at 38.2% level of 18200 and could not sustain above it on the last day of trading.
Moreover if one checks the Fib from current swing low of 17098 to 18887 then 18200 (38.2%) and 17800 (61.8%) come out to be important levels and Nifty has respected that.
Trendline Analysis: -
Joining the swing lows of Jun end 15183, Sep end of 16747 we get a trendline which Nifty broke below and then is trying to get back above that. On Thu, it closed above it but Fri it gave up its gains and is resting just below or inside the line.
Similarly for the swing highs of Dec 18696 and 18473 the trendline got broken and is currently being retested.
All in all one can see that Nifty is at a crucial juncture and if the current lows of 18050 and 18000 get broken in the next week then it will go towards the 61.8% retracement of 17564 and 17437 would be the ultimate target. It might get support at 17650 as well.
Well in the short term Nifty also is forming a Rising Wedge pattern. So if that breaks then bearishness might ensue.
If it climbs above 18200 and sustains then the Swing High of current move 18463 will be tested and Nifty will be bullish in the coming months.