NIFTY Trend Expectation for Next Week

NSE:NIFTY   Nifty 50 Index
Nifty Daily Chart Analysis for 08-08-2022 to 12-08-2022


As the trend is muted with rangebound markets since last 4 days its very hard to get proper direction unless market breaks some barriers on either side, so thought of giving a directional view for next 5 trading days. Will update in-between trading days if need my attention.

Now back to Chart :

As we all are aware of recent rally in markets which was close to 2000+ points movement from bottom made in July.
In the upward Journey Nifty has left critical gap open in between 16900-17000 which eventually needs to get filled very soon unless Nifty crosses and closes above 17550 levels.

Point of Concern:

while progressing in this upward journey there are multiple Daily, Weekly Fibonacci as well as Trendline Resistances which are & will be in force and may prevent Nifty from marching ahead without Gap Fill (this is my assumption as of now). Open Gap also lies at very important Fibonacci Retracement level of 0.50 of last swing (marked in red path) which gives me reasonable confidence for downside as this will be a healthy correction for markets if it needs to rally without bubble.

On the other hand RSI on Daily charts is flat, RSI is getting weaker on Hourly Charts since last few days which is also a sign of bearish undertone

Trade Setup :

I am of the view that unless Nifty Crosses and Closes above 17550 for at least 2 days its wise to go short or stay short as the Risk Reward is favorable for Short Sells. Better to catch some IN THE MONEY (ITM) Put Option and hold it. Day Trading is not advisable as correction if comes will be brutal.

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Attached below few Related Ideas posted under my profile in recent time.

Happy Hunting ,


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