A rally in upcoming week?
1. Doji candle at channel break/bottom stating indecision in the market. There could be a possibility that it has broken the channel bottom and just retested it and will continue its downward movement. If Nifty trades below the 15180 levels then 14900 is a possibility in the next week
2. Volume expansion observed at the previous bottom - Nifty witnessed huge volume spike similar to S&P on Friday. This denotes institutional buying at these levels and previous similar levels of volume expansion led to a vicious rally.
3. RSI oversold and observed divergence (lower low on price and higher low on RSI (needs confirmation and rise above OS zone)
4. 100 Weekly MA support at 15250 levels
5. Bank Nifty at a strong support zone.
External factors: -
1. Crude oil easing off a lot on Friday after market close.
2. Relentless fall (pullback is due)
Bear market case: -
1. The channel is not correct and is infact an expanding wedge which will lead to Nifty falling to somewhere to 14750 levels. Needs to trade below 15180 for confirmation of that.
2. Crypto sell off accelerated in last 2 days.
1. Doji candle at channel break/bottom stating indecision in the market. There could be a possibility that it has broken the channel bottom and just retested it and will continue its downward movement. If Nifty trades below the 15180 levels then 14900 is a possibility in the next week
2. Volume expansion observed at the previous bottom - Nifty witnessed huge volume spike similar to S&P on Friday. This denotes institutional buying at these levels and previous similar levels of volume expansion led to a vicious rally.
3. RSI oversold and observed divergence (lower low on price and higher low on RSI (needs confirmation and rise above OS zone)
4. 100 Weekly MA support at 15250 levels
5. Bank Nifty at a strong support zone.
External factors: -
1. Crude oil easing off a lot on Friday after market close.
2. Relentless fall (pullback is due)
Bear market case: -
1. The channel is not correct and is infact an expanding wedge which will lead to Nifty falling to somewhere to 14750 levels. Needs to trade below 15180 for confirmation of that.
2. Crypto sell off accelerated in last 2 days.