Aug22-W1: Nifty to rise till 17400ish but then what? (Aug1 to Au
What I said last week was that the Nifty should find support around 16450 which is a Fibonacci level. This is exactly what happened. However, I was not expecting that Nifty will go into a super-trend. Now the following is my analysis for coming week:
The number 1 question that comes to mind – what is the target? There are a couple of methods that I personally use. Number 1 is Fibonacci again. It shows that there is a resistance band between 17150 and 17250. However, sgxnifty has already broken that band. Therefore, the next target is 17450. This is also in sync with support/resistance formation around mid-april. However, going till 17500 cannot be ruled out if I look at my green parallel channels. I do expect correction till 5-EMA once the target is met.
Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…
Consolidation -Between 17575 and 16800
Downtrend - If breach below 16800; to drop somewhere till 16275
Uptrend - If breach above 17525; to rise somewhere till 18050
US GDP has contracted in 2 successive quarters but the stock market does not care. I don’t know why then we care about GDP numbers.
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.
The number 1 question that comes to mind – what is the target? There are a couple of methods that I personally use. Number 1 is Fibonacci again. It shows that there is a resistance band between 17150 and 17250. However, sgxnifty has already broken that band. Therefore, the next target is 17450. This is also in sync with support/resistance formation around mid-april. However, going till 17500 cannot be ruled out if I look at my green parallel channels. I do expect correction till 5-EMA once the target is met.
Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…
Consolidation -Between 17575 and 16800
Downtrend - If breach below 16800; to drop somewhere till 16275
Uptrend - If breach above 17525; to rise somewhere till 18050
US GDP has contracted in 2 successive quarters but the stock market does not care. I don’t know why then we care about GDP numbers.
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.
