We are undertaking analysis for the Nifty for the forthcoming week to help you understand that how the market can form up in the forthcoming week.
Nifty has maintained above its 50 days EMA since May 2020 and time-wise correction not exceeded for more than a week.
As a result, weekly price action formed a bull candle carrying a higher high-low, indicating a pause in corrective bias as the index managed to hold intermediate support of 14400 despite rise in global volatility. Have a look at the Nifty daily chart below to understand the ascending nature of the Nifty index.
Structurally, the formation of higher peak and trough on the larger degree chart backed by the rejuvenation of market breadth makes us confident to retain support base at 14500 as it is a confluence of:
a) Since May 2020, the index has not sustained below its 50 days EMA. Currently, the 50 days EMA is placed at 14505
b)The 50% retracement of February rally (13597-15432), at 14514
c)Last week’s panic low is placed at 14468
We are optimistic on Nifty till the time the level of 14400 is not broken.
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