The Nifty 50 index has formed a potential inverse head and shoulders pattern on the daily timeframe, which generally indicates a bullish reversal. However, there are key levels to watch before confirming the next move.
Key Observations:
Support Levels:
The 50% Fibonacci retracement level at 22,937 is a crucial support.
The 61.8% Fibonacci retracement level at 22,717 is another key demand zone.
A break below these levels may invalidate the bullish setup and push Nifty towards 22,400 or lower.
Resistance Levels:
Immediate resistance is near 23,157 (38.2% Fib level).
A strong breakout above 23,430 (23.6% Fib) could open the door for a retest of 23,870 and beyond.
Volume & Confirmation:
Increasing volume at the lows suggests strong buyer interest.
A confirmed breakout with volume above 23,200-23,400 will strengthen the bullish case.
Trading Plan:
Bullish Scenario: If Nifty holds above 22,717, we may see an upward move towards 23,400+.
Bearish Scenario: A break below 22,700 could accelerate selling pressure, with 22,400-22,000 as the next support zones.
Key Observations:
Support Levels:
The 50% Fibonacci retracement level at 22,937 is a crucial support.
The 61.8% Fibonacci retracement level at 22,717 is another key demand zone.
A break below these levels may invalidate the bullish setup and push Nifty towards 22,400 or lower.
Resistance Levels:
Immediate resistance is near 23,157 (38.2% Fib level).
A strong breakout above 23,430 (23.6% Fib) could open the door for a retest of 23,870 and beyond.
Volume & Confirmation:
Increasing volume at the lows suggests strong buyer interest.
A confirmed breakout with volume above 23,200-23,400 will strengthen the bullish case.
Trading Plan:
Bullish Scenario: If Nifty holds above 22,717, we may see an upward move towards 23,400+.
Bearish Scenario: A break below 22,700 could accelerate selling pressure, with 22,400-22,000 as the next support zones.
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.