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Nifty Index: Stabilization and Recovery Above 22500.0

Nifty Index: Stabilization and Recovery Above 22500.0

After we bounced back above the EMA200 on Monday, the Nifty index successfully stabilized. Yesterday, we witnessed the formation of a new weekly high for the German 40 index at the 18236.9 level.

Nifty chart analysis

After we bounced back above the EMA200 on Monday, the Nifty index successfully stabilized. This morning, we first consolidated around the 22400.00 level, only to later see a bullish impulse and break above a new weekly high at the 22625.95 level. Soon, the Indian market will close, and we see a decrease in volume and a pullback of the index to the 22570.00 level.

Today has been a remarkably positive day for the Nifty, setting the stage for a potentially bullish trend tomorrow. We have identified potential higher targets at the 22700.00 and 22800.00 levels. However, a bearish option could come into play if we experience a pullback below the 22400.00 level.

Our strategy involves testing the EMA50 first, and if it fails, we may descend to 22300.00 and test the EMA200 moving average. As long as we remain above the EMA200, we can maintain our optimism for a continuation of the bullish trend.

German 40 chart analysis

Yesterday, we witnessed the formation of a new weekly high for the German 40 index at the 18236.9 level. However, the index soon began to drop, initiating a retreat from that zone. This led to a decline to the 17980.0 level and the EMA200 moving average. While we managed to stay above that support today, we are still under significant bearish pressure. We are currently perched at EMA20, and there is a possibility of slipping below to a new daily low.

This confirms the momentum to the bearish side and we expect to see further pullback. Potential lower targets are 17950.0 and 17900.0 levels. We need to hold above the moving average and 18000.0 level for a bullish option. If we succeed in that intention, we can hope for a revival on the bullish side. Potential higher targets are 18100.0 and 18150.0 levels.

The post Nifty Index: Stabilization and Recovery Above 22500.0 appeared first on FinanceBrokerage.

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