Nifty Higher Highs!

17 thg 12, 2023

Nifty has been seen gone bonkers and making swift moments upwards, without giving any breather to option writers. India VIX too marching along nifty(as suggested in previous post).

Here in this study, on the left, I highlight the fund managers' chart or Quarterly Chart of Nifty. With help of #Elliot wave principles, I have marked the #Fibonacci Extension level on the lifetime chart of Nifty. Interestingly, Fibonacci levels have acted as major #Resistances. We have see big corrections only at these levels. We had expected Nifty to spend some more time at 2.6 Fib levels or 18000. But, Nifty has surpassed this 2.6 Fib Level and now heading towards 3.6 Level or ~24250. Before that I do not foresee any major correction! Note how Quarterly 50 EMA as been the lifeline or rock solid #support, even in time of distress.

On the right, is the post-covid rise of Nifty on Monthly time-frame. I have plotted EMAs and MACD. Very beautifully price has mostly been above monthly 5 EMA to continue its upwards journey. Monthly 13 EMA and 26 EMA have acted like good support, ideal for swing entries. Currently price has broken out of the 2023 #Flag&Pole pattern. Zooming towards the next Target ~24250.

Here I would like to draw your attention on #MACD. The rise after the covid-fall had given us positive crossover. And it is only now that we are getting a positive crossover which has now sustained with the flag breakout and aiming upwards. Isn't it a great confirmation.

It is buy on dips all the way, provided you get those dips now ;-)

Note: Current Monthly candle is still a running candle. It can even close at lower levels or turn negative. So is the case with the Quarterly candle. But this will not change our view. Our view will still be bullish towards our next target ~24250, just that the momentum might get slow and that we might take more time to reach our target.

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Nifty back in game!

We will see good directional moves in Nifty in coming week

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Guys!

Target very close or consider done!

2 thg 11

Ghi chú

Nifty respecting the Fib Extension Levels, with an over-through of 2000 Points or 8.33% (ha..ha just like Diwali bonus)! Hope you all are booked and out of the game.

But do not be in hurry to build new positions yet. Typically a Fib extension level has the potential to hold the price around its level for a longer time then we can expect it to! Previous price action suggests correction to last for minimum 300 days. Even after that price might hover around the fib level for another 300 days before it finally breaks out for it up-words journey to 28000 i.e. the next Fib resistance level a hardly. That is a hardly ~ +7% from its ATH. But it won't come easy.

2 thg 11

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MACD has made a hook, and downwards facing. If the current Monthly Red engulfing candle is to be trusted, the next support of Nifty can be spotted between 13(orange) & 26(green) Monthly EMA, which currently are at 23200 & 21400.

21400 levels has a good potential to create a new base. 50EMA (blue) on Quarterly chart has lot of catch up to do too.

Previous price action suggests it has potential to correct minimum 50% level from the previous Fib levels it had broken out. In Covid we saw it retrace complete 100% to the previous level to take support. 21400 levels coincides with that 50% correction level.

Re-start building up around those level and trust the 5 Ema (red) on Monthly chart to give you the direction of the trend.