In Depth Analysis for Nifty 50 Index (1-Hour Chart)
Symbol: Nifty 50
Timeframe: 1-Hour
---
Technical Analysis:
The Nifty 50 index is currently trading at 23,559.60, moving within a well-defined downward-sloping channel. The price is nearing a crucial support zone (23,480-23,570), which could act as a potential area for a short-term bounce. However, the overall trend remains bearish unless a breakout occurs above the resistance levels.
---
Key Observations:
1. Trend: The index is clearly in a downtrend, forming lower highs and lower lows within the channel. The bearish sentiment remains dominant.
2. Support & Resistance:
Immediate Support: 23,480-23,570. A breakdown below this level could lead to further downside toward 23,200.
Immediate Resistance: 24,070-24,540. These levels correspond to the midline and upper boundary of the channel.
3. Volume Analysis: Declining volumes on the recent down move indicate a potential loss of selling momentum, suggesting the possibility of a short-term pullback.
4. Potential Reversal Zone:
A break above 24,070 could trigger a short-covering rally, pushing prices toward 24,540.
---
Trade Setup:
1. For Bulls:
Entry: Consider going long near 23,480-23,570, provided there are bullish reversal signals like a hammer or bullish engulfing candle.
Target: 24,070, and an extended target of 24,540.
Stop Loss: Below 23,450, to minimize downside risk.
2. For Bears:
Entry: Look for shorting opportunities on rejection near 24,070 or at the channel’s upper boundary (24,540).
Target: 23,480 and further downside to 23,200.
Stop Loss: Above 24,600.
---
Potential Scenarios:
1. Bullish Breakout: A decisive close above 24,070 will confirm a breakout from the channel, opening doors for a move toward higher levels.
2. Continuation of Downtrend: If the index fails to hold the 23,480 support, it could continue its bearish trajectory to 23,200.
Timeframe: 1-Hour
---
Technical Analysis:
The Nifty 50 index is currently trading at 23,559.60, moving within a well-defined downward-sloping channel. The price is nearing a crucial support zone (23,480-23,570), which could act as a potential area for a short-term bounce. However, the overall trend remains bearish unless a breakout occurs above the resistance levels.
---
Key Observations:
1. Trend: The index is clearly in a downtrend, forming lower highs and lower lows within the channel. The bearish sentiment remains dominant.
2. Support & Resistance:
Immediate Support: 23,480-23,570. A breakdown below this level could lead to further downside toward 23,200.
Immediate Resistance: 24,070-24,540. These levels correspond to the midline and upper boundary of the channel.
3. Volume Analysis: Declining volumes on the recent down move indicate a potential loss of selling momentum, suggesting the possibility of a short-term pullback.
4. Potential Reversal Zone:
A break above 24,070 could trigger a short-covering rally, pushing prices toward 24,540.
---
Trade Setup:
1. For Bulls:
Entry: Consider going long near 23,480-23,570, provided there are bullish reversal signals like a hammer or bullish engulfing candle.
Target: 24,070, and an extended target of 24,540.
Stop Loss: Below 23,450, to minimize downside risk.
2. For Bears:
Entry: Look for shorting opportunities on rejection near 24,070 or at the channel’s upper boundary (24,540).
Target: 23,480 and further downside to 23,200.
Stop Loss: Above 24,600.
---
Potential Scenarios:
1. Bullish Breakout: A decisive close above 24,070 will confirm a breakout from the channel, opening doors for a move toward higher levels.
2. Continuation of Downtrend: If the index fails to hold the 23,480 support, it could continue its bearish trajectory to 23,200.
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.