Nifty Previous Week
The Nifty declined -2.2% and closed at 11552 on the week ending 12 July. As predicted previously, Nifty traded within the range. Nifty observed a big drop last week owing to “Budget” information. The bearish move was also anticipated by technical charts.
Overview
The long term view is Bullish. However, downward move can be observed this week also. From the daily charts, we can clearly identify two trends. Trend 1 is formed considering short term supports while Trend 2 is formed considering long term historical supports.
As mentioned in my previous post about filling the Gap at around 11500, the gap is now filled. Also, Nifty is trading at a support level, so caution needs to be taken for this week. It will be better to wait till Tuesday or Wednesday, to get some confirmation on the direction.
We can observe from the hourly charts, that nifty can decline further. A bearish flag pattern is also forming. Flag patterns are continuation patterns , so if nifty breaks the pattern or the support from Trend 1, we can observe the downward move and the nifty can find support at Trend 2 at around 11380.
Overall, most of the patterns and models are pointing towards a bearish move. I think its better to wait for 1-2 days and get confirmation from other technical indicators (RSI and other indicators are not strong enough now). Trades can then be taken accordingly.
Prediction
Disclaimer
This article is to introduce readers / traders/ students about the predicting aspects of trading and doesn’t guarantee any success. Trading is a very risky business and losses can exceed investments. Trade at your own risk
