Nifty 50 
NIFTY the flagship large-cap index, is failing to offer sustainable returns to investors. The never-ending sideways grinding of the index is demotivating investors from further scale-up investing in the security. Additionally, the index is trapped inside a strong resistance and support zone. Unless there is a solid breakout or breakdown from the sideways channel, any movement prediction would be wasteful.
The idea aims to offer a technical view of the index. Note: The idea avoids fundamental analysis due to the author's limitation in comprehending the same. The technical and probable scenario analysis is as follows:
● Strong Resistance Zone (SRZ): (24800 - 24600).
For a bullish breakout, the price must sustain and trade above the SRZ. Investors will have hope only if there is a sustainable breakout above the SRZ. Until then, it is a confusing and indecisive market.
● Strong Support Zone (SSZ): (23800 - 23600).
The SSZ would act as a strong support to save the market from falling into the bearish phase. In case the market breaks down below the SSZ, then hopeful investors might exit their positions. Also, there is a high chance of the index entering a major bear phase.
● Range of Consolidation (ROC) or Indecision Zone: (24800 - 23600)
Here, 24200 is the median of the ROC. The median works like a trading session sentiment evaluator. The price trading above the median would indicate bullish sentiment, while the price trading below the median would trigger bearish sentiment within the ROC.
● Chart Pattern: Upward Rising Parallel Channel
Besides the sideways range, the market is also trapped inside an upward-rising parallel channel. It is a sign of a major running correction.
🟡 What is the condition igniting hope among the investors?
"A sustainable breakout above 24800 would offer hope for the investors."
⏺ What to do NOW?
Do nothing. It is advisable to reduce activity in the index as well as speculation until there is clarity. In a consolidating phase, all the activities are neutralized by the market.
● Disclaimer + End Note
- All the analyses would fail in the case of a major gap up, gap down, or price structure anomaly. Thus, practice PRAGMATISM in the live session.
- Trade only if there is a set-up. Remember, not trading is an extension of the trading activity.
- Mark your points. Trade your points. Price is GOD. Anything can happen in the markets. Thus, trade what you see, not what you believe.
- Always PRACTICE RISK MANAGEMENT. Always PROTECT YOUR CAPITAL. Be RESPONSIBLE.
- The post is purely based on technical and chart analysis. The author has not studied the fundamentals. Thus, any fundamental or macroeconomic event can disrupt chart analysis.
- The author has no intention to promote buy or sell recommendations.
- The post is only for educational purposes.
- The intent of the post surrounds trading levels as well as an investment idea.
- Novice traders should stick to the cash segment for swing trading instead of F&O. This post has no intention to promote F&O trading.
- Please be mindful during trading and investment decisions. Be Responsible.
- Be Strategic. Be Courageous. Be Patient. Be Wise.
- Every day is a new day. Thus, do not carry the baggage of past successes or failures. Leave the gardens of winning and losing. Establish yourself in equanimity. Always think from a new perspective.
- Let the joy of trading drive your effectiveness, not greed or fear. Believe in Possibilities.
Happy Trading + Investing !
NIFTY the flagship large-cap index, is failing to offer sustainable returns to investors. The never-ending sideways grinding of the index is demotivating investors from further scale-up investing in the security. Additionally, the index is trapped inside a strong resistance and support zone. Unless there is a solid breakout or breakdown from the sideways channel, any movement prediction would be wasteful. The idea aims to offer a technical view of the index. Note: The idea avoids fundamental analysis due to the author's limitation in comprehending the same. The technical and probable scenario analysis is as follows:
● Strong Resistance Zone (SRZ): (24800 - 24600).
For a bullish breakout, the price must sustain and trade above the SRZ. Investors will have hope only if there is a sustainable breakout above the SRZ. Until then, it is a confusing and indecisive market.
● Strong Support Zone (SSZ): (23800 - 23600).
The SSZ would act as a strong support to save the market from falling into the bearish phase. In case the market breaks down below the SSZ, then hopeful investors might exit their positions. Also, there is a high chance of the index entering a major bear phase.
● Range of Consolidation (ROC) or Indecision Zone: (24800 - 23600)
Here, 24200 is the median of the ROC. The median works like a trading session sentiment evaluator. The price trading above the median would indicate bullish sentiment, while the price trading below the median would trigger bearish sentiment within the ROC.
● Chart Pattern: Upward Rising Parallel Channel
Besides the sideways range, the market is also trapped inside an upward-rising parallel channel. It is a sign of a major running correction.
🟡 What is the condition igniting hope among the investors?
"A sustainable breakout above 24800 would offer hope for the investors."
⏺ What to do NOW?
Do nothing. It is advisable to reduce activity in the index as well as speculation until there is clarity. In a consolidating phase, all the activities are neutralized by the market.
● Disclaimer + End Note
- All the analyses would fail in the case of a major gap up, gap down, or price structure anomaly. Thus, practice PRAGMATISM in the live session.
- Trade only if there is a set-up. Remember, not trading is an extension of the trading activity.
- Mark your points. Trade your points. Price is GOD. Anything can happen in the markets. Thus, trade what you see, not what you believe.
- Always PRACTICE RISK MANAGEMENT. Always PROTECT YOUR CAPITAL. Be RESPONSIBLE.
- The post is purely based on technical and chart analysis. The author has not studied the fundamentals. Thus, any fundamental or macroeconomic event can disrupt chart analysis.
- The author has no intention to promote buy or sell recommendations.
- The post is only for educational purposes.
- The intent of the post surrounds trading levels as well as an investment idea.
- Novice traders should stick to the cash segment for swing trading instead of F&O. This post has no intention to promote F&O trading.
- Please be mindful during trading and investment decisions. Be Responsible.
- Be Strategic. Be Courageous. Be Patient. Be Wise.
- Every day is a new day. Thus, do not carry the baggage of past successes or failures. Leave the gardens of winning and losing. Establish yourself in equanimity. Always think from a new perspective.
- Let the joy of trading drive your effectiveness, not greed or fear. Believe in Possibilities.
Happy Trading + Investing !
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.