14 Feb ’24 Nifty flies like a kite today, Resistance quite near

NSE:NIFTY   Nifty 50 Index
Nifty Analysis - Stance Neutral ➡️
Recap from yesterday: “On the 63mts chart, Nifty is still neutral with no clear indication of the next direction. BankNifty is bearish and the chances of Nifty going down may be higher due to that. The first target to break should be 21491 below which the bearish momentum will pick up an avalanche effect.”

4mts chart
Nifty does another impossible feat today, breaks yesterday’s swing low and then surges 341 points ~ 1.59% to close near the resistance level. Yesterday we were gearing up to go short today as every indicator pointed to a negative start with a bearish bias. The global macro was pretty bad as SPX closed at -1.37% as their CPI Inflation data came in hotter than expected. Market participants here were expecting Nifty to fall at least 200 points today, but look at what happened - we fell first trapping the bears, and then shot upwards creating an avalanche (but in the positive direction).
The price action made sense till 14.03 as it's quite normal for the indices to retrace and close the gap. But a surge of 234 points ~ 69% of the day’s swing range within the closing hours made no logic at all. We still believe it could be news/event-related and if yes - we may get to know it by tomorrow.
In the 63mts chart, see the encircled region - the strength of the green candles stands out prominently. This has given Nifty a total makeover, till yesterday we were neutral with a moderate bearish bias. Today we are still neutral but with a bullish bias - as the resistance of 21913 is much closer than the support of 21491. The interesting thing is that if the moves today were not news-related and is a technical reversal then the break of 21913 will ensure the ATH is also getting taken out.

63mts chart


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.