Nifty still in search of strong bottom. Nifty is still in search of a meaningful bottom to launch a fight back. Few support zones are arriving with monthly closing tomorrow Nifty was able to hold on to 24500 levels as it closed dot on that support. It is was a weak closing today indicating a firm bottom is not established yet. Thus further downside can not be ruled out.
The support zone for Nifty is between 24359 and 24266 as of now. 24266 is the Father line or 200 days EMA. If by chance we get a closing below 24359 the next support will be 24266. If 24266 is broken the next support for Nifty will be at 24016 or 23705.
The resistances for Nifty now remain at 24827 (Mother line resistance) and 24872 (Trend line resistance). Closing above 24872 will open the doors for 25147 and 25477. After closing above 25377 the major medium term resistance will be at 25682. Once we get there we will get a fair idea of levels ahead.
Long term chart of Nifty is still not that bad as it is indicating of a cup and handle breakout once we are able to close above 25682. Once we achieve that in next 1 or 2 quarters the doors for 26K and 27K will open. For that we need clarity on GST reduction proposal and Tariff related issue which is plaguing the markets. The Tariff jolt is massive but industry can overcome it in the long run by looking inwards on local consumption and exploring other overseas markets if US remains defiant in the long run.
As indicated by both US and Indian trade and commerce as well as foreign experts the issue will be eventually solved. Till then boost in local consumption / exploring other markets for India Inc. seems to be the only way out for Indian markets to recover. Long term investors should still look at investing holding on to their investments with a longer outlook. Even if there is a 0.5 or 1% reduction in GDP still India will continue to be a fastest growing market.
Years / Quarters and times like these test resolve of Investors but reward the patient handsomely. So patience is the key. Holding on and reshuffling the portfolio / Fresh investment during such phases always pays the mature investor. Always remember the Great man Warren Buffet's advice which goes like this, "Market is the device where money is transferred from the impatient to the patient."
Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock or index. The Techno-Funda analysis is based on data that is more than 3 months old. Supports and Resistances are determined by historic past peaks and Valley in the chart. Many other indicators and patterns like EMA, RSI, MACD, Volumes, Fibonacci, parallel channel etc. use historic data which is 3 months or older cyclical points. There is no guarantee they will work in future as markets are highly volatile and swings in prices are also due to macro and micro factors based on actions taken by the company as well as region and global events. Equity investment is subject to risks. I or my clients or family members might have positions in the stocks that we mention in our educational posts. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message. Do consult your investment advisor before taking any financial decisions. Stop losses should be an important part of any investment in equity.
