So the big question is where is Nifty heading in 2019. The reality is we do not know the answer how it will actually pan out. But if we are to look at charts what it is trying to tell us. Here are some important points
- Nifty has been flirting with 200 day for quite some time now
- On previous 2 occasions we observe that once the testing period was done it never went below 200 day for months
- However this time the recovery has been a difficult phase and we have been flirting up and down the 200 day for quite some time now giving an indication that bulls are not quite confident any more
- Every time it has tried to recover it has faltered (which is not a good sign)
- Will 200 day start to act as resistance in 2019.... Only time will tell...
Given the chart set up 2019 could be a difficult year for Indian Markets
It may fall down to 10535 /10000/ 9100 / 8300 (extreme case) odd levels
Resistance 10780 / 11100
- So Trade cautiously & safely
-Do not use high leverage
- have a trading plan
- focus on risk management
Take care & safe trading...!!!