Nifty Outlook for Tuesday, 4th August | 50x Investments

NSE:NIFTY   Nifty 50 Index
Nifty - Technical Analysis:
  • Nifty opened with a gap down and ended the day just above its low, forming a near perfect marubozu , which is an extremely bearish signal.
  • On the bright side, Nifty managed to hold its 10900 lower trend line support.
  • The index formed a near perfect wedge on 15m charts.

    Market - Driving Factors:
  • PSU bank and Metal indices were the only 2 indices which ended the day in the green. Bank Nifty was the biggest loser, falling by over 2.6%
  • Tata Motors gave a strong breakout and ended over 8% in the green today whereas Bandhan Bank fell over 10% following a 21% equity block deal
  • Bearish narratives are starting to take steam on popular news media indicating that the bulls have something to worry about.

    Nifty - Outlook for Tuesday, 4th August:
  • Trade on Tuesday will be absolutely vital given that it has the ability to potentially signal a strong bearish breakout. If Nifty breaks the lower trend line , its bad news for the bulls.
  • On the slightly brighter side, Nifty still has some breathing space to break out. A temporary pullback and further squeeze into the wedge might be seen.
  • Traders must be cautious and avoid taking huge directional bets on either side tomorrow morning.


Comment on the post or DM us for further analysis or if you have any queries.
@Algokart, what is the bottom for this bearish market?
Algokart meesalaradha82
@meesalaradha82, difficult to put a number on it but we expect it to be pretty steep. Nifty has taken the support though, and is back within the wedge, where it has a lot of breathing space before squeezing out. So, it's a good sign for now.