Nifty50 Update: Pressure mounting


25 JUN 2018

Although a lot less bearish than most other Asian markets, the Nifty does show signs of peaking and signs of underlying weakness. The nasty reversal high of early May once again proves strength as resistance while momentum is ebbing away. Renewed pressure towards 10710 is extremely likely.

Clearing this intermediate support area opens the road for a more substantial decline; 10605 and the cluster around 10570 seem the most likely candidates on the intraday chart. The long term outlook is too fuzzy to actively trade on, but it cannot be excluded that near term weakness will lead to a longer term decline as well.

For now focus is on the down side, especially if 10710 is taken out as trigger/minor support.

  • Primary trend: neutral
  • Outlook: feeling heavy, negative < 10710
  • Strategy: avoid / trading-short
  • Support: 10710 / 10605* / ~10570
  • Resistance: 10885 / 10990 / 11125+
  • Outlook cancelled/neutralized: above 10990

420-minute Intraday Chart