30 Months Channel of Nifty suggesting Father line supportThe 30 month channel in which Nifty is travelling seems to suggest that we are near 3 critical support zones. We might see a bottom formation within this week or the next week beginning. Perhaps the pain of retail investors might end soon with chances of sectoral rotation. Let us have a look at medium to long term outlook.
As we have indicated time and again Nifty comes to meet the father line and take ashirwaad of father once in a while this is that phase. Last time Nifty came to take father line support was in October 2023. It has been more than one year now and it was imperative for Nifty to meet the Father line. FIIs helped in the process by selling enmass.
Three Major Supports for Nifty are:
1) 200 day EMA or Father line at 23542.
2) High before Lok Sabha Election Results 23352.
3) Parallel Channel Bottom near 22845.
Either of these 3 levels can be the come back zones.
Three Major Resistances for Nifty going forward will be:
1) 24040 Critical short term trend line resistance.
2) Major Mother line (50 days EMA) Resistance at 24608.
3) Shoulder of the Head and Shoulder Breakdown from where the free fall started 25436.
4) Other important resistances will be at 26277 (Previous All Time High)
5) Channel Top resistance will be in the zone of 27037 to 27705.
To Know more about Parallel Channel and Mother, Father and Small Child theory mentioned in the above message. Do read my book (The Happy Candles Way to Wealth Creation) available in E-version on Google Play books and Kindle. Paperback Edition is available on Amazon.
