If Nifty goes above 18,600, then everyone will call it a breakout and people will enter aggressively (into the market). What will be the trigger for the consolidation trend to end, and the trend to move downwards? There should be some selling now or 1,000 points from now, doesn’t make a difference (to cause a change in trend) because that has happened earlier. Therefore, I emphasise that the bears have already won the game but they have taken a pause right now for the Nifty (to bounce back to 18,300 levels). If the lower trend is declining (then it indicates a downward trend after the consolidation)… and this is the case in Nifty 50, Nifty 500 and Bank Nifty… all of them are declining today. If one of them is horizontal and the other is moving away from left to right (like in the Nifty 50 chart, where the lower trend line is moving away), then the line moving away will indicate the coming trend. Usually, a consolidation pattern happens between two parallel lines, when the broad understanding is that there is a balance between the bullish and bearish sentiments.ĭuring a consolidation, if the trend lines (drawn to connect the highs and lows) aren’t parallel but move away from each other, then there are different implications. We look at what we call a triangle, or a consolidation pattern. When you look at the broader markets, with Nifty IT or Nifty 500, they don’t seem to be showing the same strength as Nifty 50. India's underperformance compared to EM peers nears end: Jefferies
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |