In October 2021, the NIFTY index reached its first peak above 18000. It achieved a second peak in November 2022 and is currently at the same level as it was in November 2022. Following a peak, the typical initial support level is around 23%, which it reached in February 2022. The second support level, which is usually around 38%, was never reached, but the index found support around 15000 at a 30% retracement. Since hitting a low point in June 2022, the NIFTY has experienced a rally of nearly 4000 points. For approximately 20 months, the NIFTY has been consolidating within a narrow range of 16000 to 18000.
Now, with its third attempt to reach an all-time high, there is a higher likelihood of the NIFTY moving significantly higher. If two weekly candles close above 19000, the rally could extend to 23000. Considering a timeframe of 20 months from now and being conservative with a 1:1 ratio, we may witness the NIFTY reaching 23000 by March 2025. It won't be a V-shaped recovery, and there will be moves in both directions.
Now, with its third attempt to reach an all-time high, there is a higher likelihood of the NIFTY moving significantly higher. If two weekly candles close above 19000, the rally could extend to 23000. Considering a timeframe of 20 months from now and being conservative with a 1:1 ratio, we may witness the NIFTY reaching 23000 by March 2025. It won't be a V-shaped recovery, and there will be moves in both directions.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.