Nifty 50 Chart Analysis(Where can Nifty50 move on4th March 2024)
Overview
Observing the current trend and movement of the Nifty index, it is evident that Nifty is showing signs of a bull market. On February 28, there was a period of panic selling that ended at the 21855 level, which is also our trend support level as shown in the linked chart. The Nifty index maintained a sideways movement on Thursday; however, during the final hour of trading, an uptick in buying activity was observed, resulting in a positive closure at 21982.Subsequently, on Friday morning, an excessive buying happened which led to a market closure at 22328.
Analysis
If the Nifty index breaches both the Resistance level and the Fibonacci Extension level, and subsequently maintains a sustained position above 22331, it is anticipated to ascend towards the levels of 22461 (130 rupees movementum) and subsequently 22625 (164 rupees movementum). Conversely, should it decline below the level of 22214 and sustain such a position, it is likely to descend towards the level of 2207 (174 rupees movementum), followed by 22020. Further, if this downward momentum persists beyond the aforementioned levels, the index is expected to decline towards the level of 21856 (164 rupees movementum).
Key points on Nifty 50 Chart Analysis.
Symmetrical Chart Pattern Analysis on Nifty50 Daily Time Frame
In analysing the Nifty50 on the daily time frame, a symmetrical chart pattern has been identified. As per this pattern, when the candle breaks the diagonal resistance, there's a potential for upward movement in prices. Conversely, if the candle breaks down the diagonal support level, it indicates a possible downward movement in prices. Stop loss and target placement are determined based on the rules of the pattern.
Fibonacci Extension Levels Analysis
Fibonacci extension levels are utilized to identify potential price targets in a trending market. Typically, when the price breaks or sustains above the 0.50 Fibonacci extension level, it suggests a continuation of bullish movement, as supported by various studies. However, it's noted that between the 0.50 and 0.618 Fibonacci extension levels, a "no trading zone" is considered in this analysis. The 0.618 level acts as a critical point where price action may exhibit indecision or consolidation before establishing a clear direction.
These analyses provide valuable insights for making strategy decisions within the Nifty50 chart.
Note: -I am not providing any trading call in this analysis idea, this is my personal view on Nifty 50
Observing the current trend and movement of the Nifty index, it is evident that Nifty is showing signs of a bull market. On February 28, there was a period of panic selling that ended at the 21855 level, which is also our trend support level as shown in the linked chart. The Nifty index maintained a sideways movement on Thursday; however, during the final hour of trading, an uptick in buying activity was observed, resulting in a positive closure at 21982.Subsequently, on Friday morning, an excessive buying happened which led to a market closure at 22328.
Analysis
If the Nifty index breaches both the Resistance level and the Fibonacci Extension level, and subsequently maintains a sustained position above 22331, it is anticipated to ascend towards the levels of 22461 (130 rupees movementum) and subsequently 22625 (164 rupees movementum). Conversely, should it decline below the level of 22214 and sustain such a position, it is likely to descend towards the level of 2207 (174 rupees movementum), followed by 22020. Further, if this downward momentum persists beyond the aforementioned levels, the index is expected to decline towards the level of 21856 (164 rupees movementum).
Key points on Nifty 50 Chart Analysis.
Symmetrical Chart Pattern Analysis on Nifty50 Daily Time Frame
In analysing the Nifty50 on the daily time frame, a symmetrical chart pattern has been identified. As per this pattern, when the candle breaks the diagonal resistance, there's a potential for upward movement in prices. Conversely, if the candle breaks down the diagonal support level, it indicates a possible downward movement in prices. Stop loss and target placement are determined based on the rules of the pattern.
Fibonacci Extension Levels Analysis
Fibonacci extension levels are utilized to identify potential price targets in a trending market. Typically, when the price breaks or sustains above the 0.50 Fibonacci extension level, it suggests a continuation of bullish movement, as supported by various studies. However, it's noted that between the 0.50 and 0.618 Fibonacci extension levels, a "no trading zone" is considered in this analysis. The 0.618 level acts as a critical point where price action may exhibit indecision or consolidation before establishing a clear direction.
These analyses provide valuable insights for making strategy decisions within the Nifty50 chart.
Note: -I am not providing any trading call in this analysis idea, this is my personal view on Nifty 50