Hi!
So, Spot Nifty appears to have taken support of the level around 6820 as expected by registering the low of around 6825 on 29th Feb 2016, the Budget Day.
If we take the movement of Spot Nifty from the high of around 8336 on 26th Oct 2015 to this low, we see that after attaining the low, the Nifty has rapidly moved upwards. This means that the falls if any hereafter shall be slow and of lesser drops.
The current target appears to be at 61.8% level (38.2% in the chart above), which is around 7760. If this happens, if is healthy. If not, Nifty may turn downwards
- Immediately and may take support from the level around 7400 to move upwards again or,
- May continue till the 50% level of around 7580 seen in Yellow colour and then fall again.
During this calendar year, so far we have seen that Spot Nifty was falling rapidly but was gaining strength slowly. Most of the time, the candles were near the lower Bollinger Band.
It is the first time that the Spot Nifty has rapidly moved up and has reached the upper Bollinger Band. In my opinion, now it will remain near the upper Bollinger Band for some time till it reaches the first level of around 7580.
When the Spot Nifty is around that level, keep a good watch to see the position of candles. If you find a red coloured candle just around this level of 7580, then there would be some chances for the Nifty to fall again. But if the candle is Bluish Green and the complete candle is above this level of 7580, be sure that the Nifty shall now be proceeding to it’s next target of around 7760.
None of the above moves are going to be in a straight line though.
This is my opinion based on my understanding of the charts and I could be wrong. Use your own ability to agree/disagree with this analysis and take proper decision as you may find correct.
Cheers!
SS
So, Spot Nifty appears to have taken support of the level around 6820 as expected by registering the low of around 6825 on 29th Feb 2016, the Budget Day.
If we take the movement of Spot Nifty from the high of around 8336 on 26th Oct 2015 to this low, we see that after attaining the low, the Nifty has rapidly moved upwards. This means that the falls if any hereafter shall be slow and of lesser drops.
The current target appears to be at 61.8% level (38.2% in the chart above), which is around 7760. If this happens, if is healthy. If not, Nifty may turn downwards
- Immediately and may take support from the level around 7400 to move upwards again or,
- May continue till the 50% level of around 7580 seen in Yellow colour and then fall again.
During this calendar year, so far we have seen that Spot Nifty was falling rapidly but was gaining strength slowly. Most of the time, the candles were near the lower Bollinger Band.
It is the first time that the Spot Nifty has rapidly moved up and has reached the upper Bollinger Band. In my opinion, now it will remain near the upper Bollinger Band for some time till it reaches the first level of around 7580.
When the Spot Nifty is around that level, keep a good watch to see the position of candles. If you find a red coloured candle just around this level of 7580, then there would be some chances for the Nifty to fall again. But if the candle is Bluish Green and the complete candle is above this level of 7580, be sure that the Nifty shall now be proceeding to it’s next target of around 7760.
None of the above moves are going to be in a straight line though.
This is my opinion based on my understanding of the charts and I could be wrong. Use your own ability to agree/disagree with this analysis and take proper decision as you may find correct.
Cheers!
SS
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