Nifty_Week_Ahead

After 11 weeks of consecutive higher closings, Nifty closed lower with a wider range bar with higher volume. With this many TA's have started giving targets of 12800-11800 by February straight away. As a TA we must understand that patterns take time to develop.

Even if 14765 is considered to be the interim top, can #Nifty reverse its gear from 5th gear to reverse gear directly. Probably no. Also taking unrealistic targets of 12800-11800 from day one is ultra-negativity.

Take it one step at once. Markets may consolidate before budget with high volatile moves on either side before deciding the final direction.

Basis weekly data, #Nifty may trade between 14073-14660 with a mild negative tone. Any sharp pullbacks towards 14660 my see profit taking especially by them who are locked at higher levels.

Weekly RSI started cooling off a bit. Historically when RSI(14) has gone past 80, Nifty has seen profit booking. Seems like we might see a pause in the trend. As long as we don't see a closing below 14250 on weekly basis things still in bulls court. They will decide whether they want to take price higher or lower. Bears should ideally wait for a 20 DEMA breach at least.

On daily chart 14375 would remain the major neckline support followed by 14250. Sliding below that one could reduce positional longs. Whatever, in any pullback on upside, its a very good level for portfolio churning and going cash by 20-30%.

Comment:

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