1. Elliott Wave Structure
The chart appears to follow an Elliott Wave structure, where the market is in a corrective wave (4).
The labeling suggests that the current upward move is wave 4, which is expected to face resistance and reverse into wave (5) downward.
2. Resistance & Support Zones -
Resistance Zone: Around 22,700 levels.
This level is marked as a potential reversal zone for the next bearish wave (5).
If NIFTY crosses above this resistance, the bearish outlook would weaken.
Expected Support: 21,450 levels.
The chart projects that NIFTY could fall to this level after rejection from resistance.
This level would act as a key support in the next wave down.
3. Volume Analysis-
The volume bars show a mix of increasing and decreasing interest, but no major volume spikes at the resistance zone yet.
If selling volume increases near resistance, it would confirm a reversal.
4. Histogram / Momentum Indicator-
The momentum indicator (histogram at the bottom) is rising, suggesting a short-term bullish push.
However, in a downtrend correction phase (wave 4), such momentum may be temporary before the next drop.
5. Trend Conclusion-
Short-term: Bullish (Wave 4 uptrend towards resistance)
Medium-term: Bearish (Wave 5 expected downward move if resistance holds)
Key Levels to Watch:
22,700: Resistance to confirm reversal.
21,450: Expected target if the downtrend resumes.
Trading Outlook:
If NIFTY breaks 22,700 with strong volume, expect further upside.
If rejection happens at resistance, a sell-off towards 21,450 is expected.
Disclaimer:
This analysis is for educational purposes only and should not be considered financial advice. Trading and investing in the stock market involve risks, and past performance does not guarantee future results. Please conduct your own research or consult a professional financial advisor before making any trading decisions.
The chart appears to follow an Elliott Wave structure, where the market is in a corrective wave (4).
The labeling suggests that the current upward move is wave 4, which is expected to face resistance and reverse into wave (5) downward.
2. Resistance & Support Zones -
Resistance Zone: Around 22,700 levels.
This level is marked as a potential reversal zone for the next bearish wave (5).
If NIFTY crosses above this resistance, the bearish outlook would weaken.
Expected Support: 21,450 levels.
The chart projects that NIFTY could fall to this level after rejection from resistance.
This level would act as a key support in the next wave down.
3. Volume Analysis-
The volume bars show a mix of increasing and decreasing interest, but no major volume spikes at the resistance zone yet.
If selling volume increases near resistance, it would confirm a reversal.
4. Histogram / Momentum Indicator-
The momentum indicator (histogram at the bottom) is rising, suggesting a short-term bullish push.
However, in a downtrend correction phase (wave 4), such momentum may be temporary before the next drop.
5. Trend Conclusion-
Short-term: Bullish (Wave 4 uptrend towards resistance)
Medium-term: Bearish (Wave 5 expected downward move if resistance holds)
Key Levels to Watch:
22,700: Resistance to confirm reversal.
21,450: Expected target if the downtrend resumes.
Trading Outlook:
If NIFTY breaks 22,700 with strong volume, expect further upside.
If rejection happens at resistance, a sell-off towards 21,450 is expected.
Disclaimer:
This analysis is for educational purposes only and should not be considered financial advice. Trading and investing in the stock market involve risks, and past performance does not guarantee future results. Please conduct your own research or consult a professional financial advisor before making any trading decisions.
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.
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.