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Niftyparallelchannel

Nifty searching for upward momentum. Nifty has again held on to the Motherline support of 50 Hours EMA today and if it is able to cross the resistance of 24698 more upside can be on the cards. In such a scenario the resistances on the upside in addition to 24698 will be at 24775, 24852, 24975 and finally 25147. The supports for Nifty on the lower side seem to be at Mother line of 50 Hours EMA which is at 24852, 24398 Father line support of 200 hours EMA, Mid channel support at 24290 and finally the support is at 24174. Below 24174 Nifty become very weak. Above 25147 there will be a parallel channel breakout and Bulls will become very powerful. The signs are positive and despite a negative day on the browsers shadow of the candle is neutral to positive for tomorrow. Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
NSE:NIFTYLong
by Happy_Candles_Investment
Long Term Analysis of Nifty my observations and a conclusion.The chart above is the chart of Nifty 50 since 1991. This chart here tells a few stories. I will tell you my version of these stories or observations you can derive your own conclusions from them: 1) India is a continuous bull market. There are blips due to Micro and Macro reasons but the chart keeps moving forward in the parallel channel. We are in the upper half of the channel since 2005 indicative of an economy that is moving forward and GDP that is continuously growing. There are couple of times when the market went into the lower half of the channel once was during the 2008 Sub-prime crisis and once during the COVID19 global crisis. Lot of countries of the world have still not come out of the trauma but we bounce back each time. This tells us about strength of our nation and our economy. 2) There is lot more room to grow before we hit the channel top resistance. Even in case of some major political event or market correction. We can get the mid channel support and the support of Mother line 50 Months EMA. 3) Relative Strength index is a lagging indicator used by a lot of analyst to check if the market is overbought or oversold. As per my observation over the years. We start to enter the overbought territory once the index is above 70. RSI above 80 is indicative of a market that is overbought. Similarly when the RSI levels are below 30 we enter the oversold territory and When RSI is below 20 we are in the highly oversold territory. Now if you look at the chart carefully each time monthly RSI of Nifty has gone near / above / substantially above 80 levels there has been a correction in the market. Some corrections have been large some not so substantial but inevitably market has corrected. Right now RSI of Nifty is 78.94. The levels to watch out for reversal / Consolidation / correction in my opinion can be anywhere between 79.88 and 91.35. I am not trying to scare you or predict a doomsday scenario, I am just presenting historic data in front of you. 4) Market can remain irrational for period of time beyond human comprehension. Market can remain irrational more than an investor can remain rational. So while we ride the upwave changing sectors and changing our stories and choices shuffling between small and mid and large caps do not forget to put in your stop losses and trailing stop losses. Stop losses are our friends that protect our capital and trailing stop losses are our friends that protect our profits. While we use them it can happen that a stock takes your trailing stop loss and again bounces back to huge upside but it is fine, either we learn or we win. If you have the capital you can invest again. If you will not have the capital it is an irreversible loss. Conclusion: Stay Positive but be cautious. Use stop losses with discipline and trailing stop losses generously. The chart shows that history repeats. The chart shows that India is a continuous bull market. The chart shows that long term investor will always win if he has discipline and follows a process in stock selection, profit booking and staying vigilant.
NSE:NIFTY
by Happy_Candles_Investment
Mid-Channel Support and 50 EMA on Hourly Parallel channel BrokenMid-Channel support and 50 hours EMA on Hourly Parallel channel is Broken and now the next support for Nifty is only near 19633. Other supports for Nifty are near 19572 and 19516. 200 EMA which will be like major support for the existing rally is near 19289. Below 19289 the Rally may fizzle out and bears will strive to take control. Resistances on the upper side will be the zone between 19708 to 19761 (Major resistance zone now as it will have several resistances including 50 hours EMA and Mid channel Resistance). Crossing this zone is difficult but if Nifty does cross it next resistances will be near 19827, 19890 and finally 19939.
NSE:NIFTY
by Happy_Candles_Investment