Market continued its fall till Thursday, On Friday; it touched near to the expected level (and also close to the bottom trend line of the Parallel channel mentioned last week). and did a smart pull back, which I had already mentioned. But is it an indication that the downside is over? In my opinion it is not. Then what do I expect next week? To explain a bit more, this time, I am using the latest swing of the Daily chart. I have drawn a parallel channel again. As you can see, NIFTY is almost systematically adhering to this channel. Hence I expect nifty to touch approximately, 5415, which is the top trend line of the channel. The engulfing pattern shown in the Zoomed view is indicative of that. However, if NIFTY fails to sustain above this Top line, then we might see a sharper fall in the second half of next week.
Now, looking at the weekly chart of NIFTY, we should assume that, if line 3 is broken, it should be coming to line 4. The approximate value at this point is 4534. The time frame in which it is expected to touch is by March third week. If NIFTY reaches, 4534 before 3rd week of March, theoretically, it should overshoot line 4.
Note that in reality it may vary from this point of view. Hence, any trading action should be done in consultation with your broker. Neither the analyst nor the publisher is responsible for your trading outcome.
