Continuing the analysis of Nifty50 as per the idea shared on April 19, the following are the events that unfolded.
1. Price reversed from the PRZ at 0.886 (17150) and found resistance at the confluence of the last swing high and the trend line coming from the top at 17300, triggering a late sell-off on April 19 - on the back of some news related to the Russia Ukraine war
2. The sell-off was so severe that Nifty50 breached 17000 and met the 1.13 PRZ at around 16870 levels in a flash
3. When everybody had turned bearish, the next day, April 20, saw a gap up opening above 17000, and the index posted a splendid recovery until 17500 levels on April 21, creating a highly bullish candle
4. At this point, Nifty50 had formed a half-bat pattern as shown - with 17500 as a powerful resistance level
5. When everybody was bullish because of the strong closing on April 21, the index surprised everyone with a gap down around 17240 levels - thanks to the half-bat pattern!
6. The day continued to be bearish, with Nifty closing around 17170 levels on the spot
7. During this same period, world markets have been bearish, with Dow falling almost 2000 points till the closing on Friday (April 22) and SGX nifty closed on Friday around 17000 levels after our market hours.
8. Coming into the last week of April, Nifty50 is posted around a critical range between 16800 and 17500. An ABCD pattern is visible from the point of rejection around 17500.
9. Now, coming to the possibilities for the week, these are the things that could happen
a. Nifty50 opens gap down on Monday per the global cues and breaches the 16800 levels - this will activate the ABCD and the probability of testing levels around 16230 opens up.
b. Nifty50 opens the gap down and regains 16800 levels forming a double bottom around these levels. In this scenario, two things can happen
i. Nifty50 goes sideways and trades in a range between 16800 and 17500 with high volatility
ii. Nifty50 gains momentum and breaks the 17500 barriers to become bullish and thus will form a ‘W’ pattern to scale 18000 in the May Series
10. Looking at the news flows over the weekend, things are very mixed - ICICI Bank has posted a good result, as Reliance - Future Retail deal off is not a good sign
11. Overall an exciting week ahead - we will keep you posted on how the views pan out as things evolve
1. Price reversed from the PRZ at 0.886 (17150) and found resistance at the confluence of the last swing high and the trend line coming from the top at 17300, triggering a late sell-off on April 19 - on the back of some news related to the Russia Ukraine war
2. The sell-off was so severe that Nifty50 breached 17000 and met the 1.13 PRZ at around 16870 levels in a flash
3. When everybody had turned bearish, the next day, April 20, saw a gap up opening above 17000, and the index posted a splendid recovery until 17500 levels on April 21, creating a highly bullish candle
4. At this point, Nifty50 had formed a half-bat pattern as shown - with 17500 as a powerful resistance level
5. When everybody was bullish because of the strong closing on April 21, the index surprised everyone with a gap down around 17240 levels - thanks to the half-bat pattern!
6. The day continued to be bearish, with Nifty closing around 17170 levels on the spot
7. During this same period, world markets have been bearish, with Dow falling almost 2000 points till the closing on Friday (April 22) and SGX nifty closed on Friday around 17000 levels after our market hours.
8. Coming into the last week of April, Nifty50 is posted around a critical range between 16800 and 17500. An ABCD pattern is visible from the point of rejection around 17500.
9. Now, coming to the possibilities for the week, these are the things that could happen
a. Nifty50 opens gap down on Monday per the global cues and breaches the 16800 levels - this will activate the ABCD and the probability of testing levels around 16230 opens up.
b. Nifty50 opens the gap down and regains 16800 levels forming a double bottom around these levels. In this scenario, two things can happen
i. Nifty50 goes sideways and trades in a range between 16800 and 17500 with high volatility
ii. Nifty50 gains momentum and breaks the 17500 barriers to become bullish and thus will form a ‘W’ pattern to scale 18000 in the May Series
10. Looking at the news flows over the weekend, things are very mixed - ICICI Bank has posted a good result, as Reliance - Future Retail deal off is not a good sign
11. Overall an exciting week ahead - we will keep you posted on how the views pan out as things evolve
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