Nifty 50 index has formed an inverse head and shoulder pattern. Its not a perfect pattern, but it meets most of the criteria to be considered an inverse head and shoulder, the second shoulder is a little shorter.
But the Stochastic RSI indicator suggests, that the Nifty is in oversold zone on the daily charts, this could mean a downfall in the short term. Such a downfall would also result in a more perfect inverse head and shoulder being formed and then the final reversal.
So what is likely to happen in the next few days to nifty? A Downfall or sideways movement for 3-4 day period, followed by a breakout and uptrend.
Things to Note - December is a month where FIIs usually sell. But since they have already sold so much, the likely hood of more selling is less. So it also confirms with the pattern formation that Nifty is likely to end up in Green in December.
But the Stochastic RSI indicator suggests, that the Nifty is in oversold zone on the daily charts, this could mean a downfall in the short term. Such a downfall would also result in a more perfect inverse head and shoulder being formed and then the final reversal.
So what is likely to happen in the next few days to nifty? A Downfall or sideways movement for 3-4 day period, followed by a breakout and uptrend.
Things to Note - December is a month where FIIs usually sell. But since they have already sold so much, the likely hood of more selling is less. So it also confirms with the pattern formation that Nifty is likely to end up in Green in December.
Nota
Correction: In 2nd Para, the indicator suggests.. Nifty is overbought. 
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Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.