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Nifty - Downside Move Expected ? At Make or Break Level

Nifty Monthly Chart showing the sign of concern. It shows the resting sign at top of the market now. The last trading of the previous week is showing weakness now. It is the first time when Nifty is at a make-or-break level after starting a rising journey in march 2020.

Nifty Weekly chart is supporting the monthly chart story, that from the last 5 previous weeks, nifty is struggling to recapture its previous all-time high point.

Nifty Daily Chart is showing that the last 23 trading days, either it is closing in red or trying to recapture its previous day high.

An overall picture of the Nifty index is clearly indicating weakness for the coming week. Option Chain is clearly showing 18000 a stiff resistance for monthly closing. One more day of closing below 17600, will confirm that the market is ready to go in the hands of bears for the short term. And closing below of 17400, will confirm that from short to medium term, we will see a very broad consolidation or a good fall downside.

We will wait for the confirmation candle on a closing basis to take any final decision.

We will suggest buying PUT options to hedge your portfolio if the market confirms the downside.

Don't rush to buy stocks in a falling market, Wait, think, and then invest. You will get good opportunities to buy good stocks at a lower level.

Thanks for reading

Happy Trading

Keep Investing


Neeraj Bhatia

Managing Director

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