Nifty Weekly chart looks bearish as it shows Nifty consolidating for few weeks and then breaking below the consolidation zone and currently trying to retest it again (bearish retest would have been much clearer if it finished below 17800 but it closed above it). But this could be a move to trap call buyers.
On the daily TF, it looks bullish as it took support from the Covid trendline and formed a double bottom and bounced back into the consolidation zone. Only the neckline which is the budget day 17900-17950 region needs to be taken out for it to be bullish.
Bullish case: - Using Fib from the current fall from 18887 to 17353, we can see that the 38.2% retracement is at the neckline of 17900-17950 region which was tested once and Nifty is close to it again. There are a lot of Daily and Weekly Moving averages at this region. So if tomorrow NIfty opens gap up above 17900 and then takes out the 17950 region then it will very easily reach 18100 which is the next resistance zone. In a flat open chances of it breaking would be a little difficult but not impossible.
Bearish case: - NIfty completed its 61.8% retracement of current swing high of 18200 and 17353 and is preparing for the next down movement. But no bearish trade should be taken until 17680-17720 region is tested and broken. This is more possible in case of a gap down as indicated by global cues.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
On the daily TF, it looks bullish as it took support from the Covid trendline and formed a double bottom and bounced back into the consolidation zone. Only the neckline which is the budget day 17900-17950 region needs to be taken out for it to be bullish.
Bullish case: - Using Fib from the current fall from 18887 to 17353, we can see that the 38.2% retracement is at the neckline of 17900-17950 region which was tested once and Nifty is close to it again. There are a lot of Daily and Weekly Moving averages at this region. So if tomorrow NIfty opens gap up above 17900 and then takes out the 17950 region then it will very easily reach 18100 which is the next resistance zone. In a flat open chances of it breaking would be a little difficult but not impossible.
Bearish case: - NIfty completed its 61.8% retracement of current swing high of 18200 and 17353 and is preparing for the next down movement. But no bearish trade should be taken until 17680-17720 region is tested and broken. This is more possible in case of a gap down as indicated by global cues.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.