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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.

Comments

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@Algokart, what is the bottom for this bearish market?
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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.
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