- The Nifty 50 has continued to show signs of life as we are currently hanging around the ₹18,000 level.
- At this point, the market looks as if it is trying to build up enough pressure to take out to the outside, and it is worth noting that in the market is hanging around the ₹17,750 level as you can see over the last couple of weeks.
- It looks as if we are trying to form some type of double bottom, and of course, it’s worth noting that India has outperformed almost everybody over the last several months.
The 50-Day EMA sits just above the ₹18,200 area, and therefore I think you need to pay close attention to that area. If we can break above there, then it’s likely that the market would go much higher, at that point I think we would see a significant kick higher. Keep in mind that while this index has outperformed many others, several of the others if there are major indices around the world are starting to take off, so that could provide a little bit of “rocket fuel” for here.
Pay Close Attention
If we were to break down below the lows that we have made over the last couple weeks, then it’s possible that we could go down to the 200-Day EMA. The 200-Day EMA is an indicator that a lot of people will use to determine the longer-term trend. If we stay above there, then it’s likely that we could go higher on these dips. However, if we were to break down below it on a daily close, that opens the downside for a rather significant move. Market participants will have to pay close attention, but I do think that this is one of those situations where you clearly cannot be a seller, and therefore you are looking for momentum to follow when it finally shows up. It’s also worth noting that we are between the 50-Day EMA and the 200-Day EMA indicators, which is quite often a pocket for support or resistance as well.
One thing is for sure, if all the other indices go higher, then it’s likely that the Nifty 50 will follow right along. As things stand right now, they do look very healthy in general, so I have reasonable hopes for this market.
Ready to trade our Forex daily forecast? We’ve shortlisted the best Forex brokers in the industry for you.