NIFTY MONTHLY CHART ANALYSIS - VERY LONG TERM
Updated
It's Purely my opinion based on observations, kindly do not get biased and alter your opinion.
If we see charts from 1990 to current date, One thing can be clearly seen that Nifty has tried to move up within a range for years and shifts the trading range with some major event. Where in 25-35% is a healthy correction within the range which can also last for few years but ultimately moving up.
From 1992 to 2004: Nifty moved within a range (HIghlighted Range in Maroon) with some pace, a breakout from this range was seen in 2005 and
From 2003 to 2007: Nifty started trading in a different zone (HIghlighted Range in Orange) with much faster pace than before and continued till 2007
From 2007 to 2011: then a breakout attempt was made, but we saw a market crash in 2008 and it broke down from the range and recovered till 2010
From 2010 to 2020: after recovery it again started trading in the new range (HIghlighted Range in Red) with normal pace and with corrections within it.
From 2020 to 202x: Now we saw a downfall in the market due to Covid19 and quickly recovered and in an attempt to give a range breakout once a breakout is done (May take years) Nifty will again try to move in a different range this time maybe with much faster pace than what we saw in the earlier range (Red).
The top made in this upmove and bottoms made after the correction of this upmove shall decide the new range within which nifty could move for upcoming years
If we see charts from 1990 to current date, One thing can be clearly seen that Nifty has tried to move up within a range for years and shifts the trading range with some major event. Where in 25-35% is a healthy correction within the range which can also last for few years but ultimately moving up.
From 1992 to 2004: Nifty moved within a range (HIghlighted Range in Maroon) with some pace, a breakout from this range was seen in 2005 and
From 2003 to 2007: Nifty started trading in a different zone (HIghlighted Range in Orange) with much faster pace than before and continued till 2007
From 2007 to 2011: then a breakout attempt was made, but we saw a market crash in 2008 and it broke down from the range and recovered till 2010
From 2010 to 2020: after recovery it again started trading in the new range (HIghlighted Range in Red) with normal pace and with corrections within it.
From 2020 to 202x: Now we saw a downfall in the market due to Covid19 and quickly recovered and in an attempt to give a range breakout once a breakout is done (May take years) Nifty will again try to move in a different range this time maybe with much faster pace than what we saw in the earlier range (Red).
The top made in this upmove and bottoms made after the correction of this upmove shall decide the new range within which nifty could move for upcoming years
Note
Range breakout 2010-2020 (HIghlighted Range in Red) done
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