Nifty May be a Nasha, but Sensex is the Sober Reality!
Attached: BSE Sensex Daily Chart as of 25th April 2023
Yes you read the Title of this Post correct, to put it simply:
Nifty is Deceptive but the Sensex is Truthful
In the above BSE Sensex 30 Chart,
we see that Price is facing Resistance at the Channel Trend Line drawn from the December 2022 High. There are presently 3 touch points already for the Channel and today marks the 4th touch point. So the Trend Down is still maintained going by this and NO Valid Breakout has taken place.
While if I look at NSE Nifty 50 Chart,
I cannot spot any such Channel that connects the Highs to give such a clean picture like the Sensex is currently giving us.
So the Question is:
Nifty or Sensex: Which Stock Index Should You Trust?
My Answer:
Trust the Truthful Sensex
Yes you read the Title of this Post correct, to put it simply:
Nifty is Deceptive but the Sensex is Truthful
In the above BSE Sensex 30 Chart,
we see that Price is facing Resistance at the Channel Trend Line drawn from the December 2022 High. There are presently 3 touch points already for the Channel and today marks the 4th touch point. So the Trend Down is still maintained going by this and NO Valid Breakout has taken place.
While if I look at NSE Nifty 50 Chart,
I cannot spot any such Channel that connects the Highs to give such a clean picture like the Sensex is currently giving us.
So the Question is:
Nifty or Sensex: Which Stock Index Should You Trust?
My Answer:
Trust the Truthful Sensex
Trade closed manually:
Ok so the Sensex has given a Breakout from the Channel, hence this View is invalidated and now Further Upside has Opened up being a Genuine Breakout
