NIFTY Expected Support Points

NIFTY Daily Candlestick Chart Analysis

9000 was an important point for NIFTY as mentioned in the previous post.  At this point, NIFTY could made a gap-down and is currently floating indecisively.

What can we expect at this point?

NIFTY can fall further and the support points are at 8523 and if it doesnt sustain then at 8340.  (Both these points are Fibonacci confluence from the market high and 4 different lows.)

From these points there is a chance NIFTY will revive.  If it falls further we'll identify new support points.

Wait before buying into this swing.

NIFTY Technical Analysis August - September 2016

NIFTY Monthly Candlestick Chart on 24th August 2016

NIFTY Monthly Technical Analysis

I did this on 24th August 2016.  NIFTY was at 8635 on that day.  The chart is long-term view with each candlestick representing a month of NIFTY's trading activity.

A Fibonacci Retracement is drawn from the market top near 8900 in Jan-Mar 2015 to the previous swing low in Aug-Sep 2013 from where the rally begun that ended in Mar 2015.

We can observe that from the high, the market found support at 6825 near 61.8% retracement of the move.   From this support, the market is moving upwards again.

Using these pivots, I think that 8900 will continue to remain an important resistance level.  The market is near this level today, and so we can expect a big movement upwards or downwards soon.

Downwards, the major support is 6825.  Upwards, the market can move to 11000+ or to 10250 in a smaller move.  These are the pivots for resistance / targets if NIFTY manages to break through 8900 and sustain an upward momentum.

In either case, the market has neared a decision point after many months of green (positive) candlesticks.  We should wait to see what the market does and once it gives a clear indication from 8900, new positions can be entered in long or short.

The market position as of today:



(Charts from Zerodha Kite HTML5 trading platform)