NIFTY Analysis – March 25, 2025
Chart Observations:
Timeframe: 30-minute chart
Price: Currently at 23,715
Moving Averages: Multiple EMAs applied (likely your Trading BOW setup with 34EMA, 62EMA, 89EMA, and 144EMA), filled in a light gray band.
Key Insights:
1. Price vs. EMA Divergence:
There is a clear and large divergence between the price and the EMA band.
Historically, such divergence acts like a rubber band effect, where price tends to revert to the mean (in this case, the EMA zone).
This often leads to sharp corrective moves or sideways consolidations.
2. Break Below Support Zone (23,650):
Marked 23,650 as an important level. If NIFTY breaks and sustains below 23,650, it opens up a quick slide toward the 23,250–23,200 zone.
The impulsive structure of the fall supports a strong correction rather than a mild dip.
3. Bearish Structure Forming:
A potential lower high is in place.
The price has pierced below the upper EMA bands, suggesting weakening momentum.
4. Possible Path Ahead (As per Arrow on Chart):
Expected structure is a zigzag decline, first drop → minor pullback → deeper drop.
Ideal test zone is middle of the EMA cloud, then potentially to the lower band or touch the lower EMA.
Levels to Watch:
Zone Action
23,650 Breakdown zone – momentum selling
23,250–23,200 First support – EMA mean reversion
23,000–22,950 Deeper support if fall accelerates
23,850–23,900 Resistance – retest zone if pullback
✅ Conclusion:
NIFTY shows signs of short-term weakness after a strong rally. The large divergence from the EMAs is unsustainable and typically resolves through a correction or sideways movement. If the 23,650 support breaks, expect a swift move toward 23,250–23,200 levels. Use caution with long positions until a fresh bullish structure develops above 23,900.
⚠️ Disclaimer:
This analysis is for educational and informational purposes only. It is not investment advice or a recommendation to buy or sell any securities. Please consult your financial advisor before making any trading decisions. Trading involves risk, and past performance is not indicative of future results.
Chart Observations:
Timeframe: 30-minute chart
Price: Currently at 23,715
Moving Averages: Multiple EMAs applied (likely your Trading BOW setup with 34EMA, 62EMA, 89EMA, and 144EMA), filled in a light gray band.
Key Insights:
1. Price vs. EMA Divergence:
There is a clear and large divergence between the price and the EMA band.
Historically, such divergence acts like a rubber band effect, where price tends to revert to the mean (in this case, the EMA zone).
This often leads to sharp corrective moves or sideways consolidations.
2. Break Below Support Zone (23,650):
Marked 23,650 as an important level. If NIFTY breaks and sustains below 23,650, it opens up a quick slide toward the 23,250–23,200 zone.
The impulsive structure of the fall supports a strong correction rather than a mild dip.
3. Bearish Structure Forming:
A potential lower high is in place.
The price has pierced below the upper EMA bands, suggesting weakening momentum.
4. Possible Path Ahead (As per Arrow on Chart):
Expected structure is a zigzag decline, first drop → minor pullback → deeper drop.
Ideal test zone is middle of the EMA cloud, then potentially to the lower band or touch the lower EMA.
Levels to Watch:
Zone Action
23,650 Breakdown zone – momentum selling
23,250–23,200 First support – EMA mean reversion
23,000–22,950 Deeper support if fall accelerates
23,850–23,900 Resistance – retest zone if pullback
✅ Conclusion:
NIFTY shows signs of short-term weakness after a strong rally. The large divergence from the EMAs is unsustainable and typically resolves through a correction or sideways movement. If the 23,650 support breaks, expect a swift move toward 23,250–23,200 levels. Use caution with long positions until a fresh bullish structure develops above 23,900.
⚠️ Disclaimer:
This analysis is for educational and informational purposes only. It is not investment advice or a recommendation to buy or sell any securities. Please consult your financial advisor before making any trading decisions. Trading involves risk, and past performance is not indicative of future results.
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.