NIFTY AHEAD OF FED INTEREST RATE DECISION

Hi Friends,

As mentioned in my previous post Nifty again took support near 8060 and broke above 8160. Nifty has broken above previous Swing High of 8250 and also trying to brake out of Falling Channel. This might be an Indication of Possible Trend Change. However Bulls need to break the Resistance at 8338 to confirm Bullish Reversal.

NIFTY

Nifty tested 8275 and has given a Hanging Man Candlestick Pattern on Daily Chart which is Bearish Signal. However, as mentioned earlier a single candlestick doesn't have much significance and Bears need to break below 8243-8191 to resume Down Trend. As mentioned currently Nifty seems to be still in Corrective Mode in Wave (II). Currently we are at crucial juncture. On Weekly Chart Nifty has given a Bullish Signal and on Daily it's giving a Bearish Signal. If Bulls manage to take out 8338 and 8489 it would be Highly Bullish Confirmation of a possible Trend Change. However, if Bears break the support at 8191 Nifty may resume Down Trend. If Bears manage to take out 8191 Nifty may decline to 7777, 7678 or even lower.

Currently we need to watch price action near 8191 and 8338 carefully to determine future course of action. As mentioned Nifty is close to forming a Bottom in Wave (II). Investors need to find Stock Specific Opportunities to make Investment in Equities. Those who missed the Opportunity in Feb 2016 can surely look to Invest in next 2 months.

Thanks & Regards,

Harsh Dixit.