Looking at the above Daily chart of the Nifty 50 index, it is clearly observable that the index is in an uptrend. Not just that, the 50DMA (red) is above the 100DMA (purple) which is above the 200DMA (green), indicating strong bullish trend in place.
Since Mar 2020, at four different instances (as highlighted in the chart), the index has taken support at one or more of these moving averages, bounced back and resumed its uptrend. The last such instance happened on 26 Feb when Nifty bounced off the 50DMA toward its ATH of 15431, which also happens to be very close to the 1.618 Fibonacci level of 15479.
If the index crosses this level of 15479, we will see momentum buying resuming and uptrend continuing toward 16000, even 20000 won't be impossible to reach.
On the bearish side, there is no bearish case till Nifty closes below 50DMA and below 100DMA. If 100DMA is breached, 200DMA will probably be touched very soon and we can see 12000 odd levels on the index, which also coincide with the pre-Covid Jan'20 high of 12430.
Until Nifty closes below 100DMA of 13700 zone, we don't see any bearish case for Nifty. There may be another buy on dips opportunity around 14700 and before the index resumes its next leg higher.
Since Mar 2020, at four different instances (as highlighted in the chart), the index has taken support at one or more of these moving averages, bounced back and resumed its uptrend. The last such instance happened on 26 Feb when Nifty bounced off the 50DMA toward its ATH of 15431, which also happens to be very close to the 1.618 Fibonacci level of 15479.
If the index crosses this level of 15479, we will see momentum buying resuming and uptrend continuing toward 16000, even 20000 won't be impossible to reach.
On the bearish side, there is no bearish case till Nifty closes below 50DMA and below 100DMA. If 100DMA is breached, 200DMA will probably be touched very soon and we can see 12000 odd levels on the index, which also coincide with the pre-Covid Jan'20 high of 12430.
Until Nifty closes below 100DMA of 13700 zone, we don't see any bearish case for Nifty. There may be another buy on dips opportunity around 14700 and before the index resumes its next leg higher.