NIFTY consolidating quite longer b/w 10250-10620. Strong support seen at 10k.
On Daily charts, NIFTY is in accumulation zone with SL of 10250. Below 10250, NIFTY may swiftly move towards 10000-10100, at 10000-10100 we see a strong opportunity to buy stocks with greater upside potential in quality stocks. Any strong intraday move on the upside with NIFTY moving more than 1-1.5%, will signal a good start of rally on the upside which can further break the resistance at 10620.
On weekly charts NIFTY is technically trending down, This had happened 15-18 months back in September-October 2016. Since buy signal was identified in NIFTY (@8000) in November-December 2016, NIFTY is almost up 30%. We will be providing information on Buy Signals in NIFTY on weekly charts. Currently Weekly Technical charts have provided Accumulation Signal with SL of 10250.
The above writing are provided as information interpreting Technical Charts of NIFTY on Daily and Weekly charts which helps investors in managing the risk in their portfolio.
NIFTY- Weekly chart: Accumulate with SL of 10250, Trending down on Technical Indicators. On further consolidation, Technical Indicators will move into oversold zone and on reversal signal, fresh buying starts with movement in the upside.
NIFTY- Daily Charts: Strong Accumulation zone with SL of 10250. Consolidating near oversold zone.
When will the market fall more?
Since on daily charts, NIFTY is in Strong Accumulation Zone and Technical Indicators suggest that the NIFTY is consolidating near oversold zone, NIFTY has to bounce back towards 10580-10620. If NIFTY fails to cross 10620, with good amount of buyers in the market, it provides a fresh downside risk of another 500 points as the buyers may start selling. That is when the market may dip towards 10000-10100. Other way that market can fall is due to some bad news in the global market and NIFTY breaks 10250 to move towards 10000-10100. Such move is less likely and will provide quick recover in short term where NIFTY will bounce back towards 10400-10450 in quick sessions.
It should be understood that things does not happen too quick and investors are always given a chance to either get into or get out of a stock atleast once.
More over, we are positive on the market in long term run. Kindly keep infusing funds in the market at regular intervals to gain the most of our quality picks.
Investors who have recently entered the market are suffering a bigger loss. It will be a good lesson to all the investors, the lesson learnt will be that market consolidation is always likely, it can be in days, weeks or months. In a long run, Market will always take care of your investment and returns.
Stay invested, Stay informed.