Has the Indian Stock Market Bottomed out yet ? Find out! #NIFTY
Good evening, traders! I hope everybody is doing great and making use of this quarantine by learning new skills.
This post is about my view on NIFTY. This post is pretty long than it should've been, but I am pretty sure you will gain valuable insights from this post. Do give it a read.
I have an experience of about 1.5 years in the financial markets and I have been tracking the Indian markets since July, 2019.
So as you guys know, the markets are at a very tough phase right now where there is a lot of fear and uncertainty, with India VIX reaching a record high of over 86.6 in March 2020, and even right now it is at a pretty high level of 45.19 In this post I am sharing my view on NIFTY 50 on where is it headed in the coming weeks. When the markets were at 12200-12300 levels, my view was heavily bearish on the markets and I saw a drop of about 1500-1800 points considering the levels in the chart as well as the overvalued markets which was clearly indicated by its fundamentals with PE ratio of SENSEX reaching at record high levels.
I couldn't post back then but today I finally decided to share the analysis with everyone. What happened in past happened, but now is the time when I felt like I should share my ideas with everyone.
I have 100% rights to be wrong.
The markets have corrected upto 9390 level from the March 2020 low of 7511, over 25%. According to my analysis, I feel like the correction is over now and in the coming months we will see a new low in the markets which can very easily align with 6400 zone, which was the high of 2008, right before the financial crisis begin. I wouldn't be surprised to see 6400-6300 levels pretty soon, before the markets actually get back to normal.
In the above chart, you can see the important levels to observe:
(9300-9390 as a strong resistance right now, with immediate support at sub 9k levels which NIFTY reached yesterday i.e. on 21st April, 2020)
Now that NIFTY has broken 9000 level, we can expect decent short-sell setups in the next few days or even weeks and as you can check on Option Chain too that huge call writing has been witnessed at 9000 level with adding over 1.2 million new contracts today.
Now the next level to watch out would be 8845-8820. If this level breaks, which I believe it will today i.e. 22nd April, 2020, then we can see NIFTY flocking towards 8700 levels pretty soon, then 8200. And then 8000, being an important psychological level would be very crucial to watch. After that sub 7.5k level would be very very important to watch and if that breaks, markets will further weaken even more and I won't be surprised to see NIFTY at 6400-6800 levels in the coming month.
That's my overall view on NIFTY and on the markets as a whole. I would be sharing smaller time frame charts and analysis on that pretty soon so that you guys can see the market structure much more clearly.
I hope you guys have gained something valuable out of this post. I would really appreciate if you take some time out to comment your view on the markets, or if you liked my analysis and learned something out of it. And please do let me know whereever I was wrong. I would love to have suggestions.
Happy Trading, Folks!
This post is about my view on NIFTY. This post is pretty long than it should've been, but I am pretty sure you will gain valuable insights from this post. Do give it a read.
I have an experience of about 1.5 years in the financial markets and I have been tracking the Indian markets since July, 2019.
So as you guys know, the markets are at a very tough phase right now where there is a lot of fear and uncertainty, with India VIX reaching a record high of over 86.6 in March 2020, and even right now it is at a pretty high level of 45.19 In this post I am sharing my view on NIFTY 50 on where is it headed in the coming weeks. When the markets were at 12200-12300 levels, my view was heavily bearish on the markets and I saw a drop of about 1500-1800 points considering the levels in the chart as well as the overvalued markets which was clearly indicated by its fundamentals with PE ratio of SENSEX reaching at record high levels.
I couldn't post back then but today I finally decided to share the analysis with everyone. What happened in past happened, but now is the time when I felt like I should share my ideas with everyone.
I have 100% rights to be wrong.
The markets have corrected upto 9390 level from the March 2020 low of 7511, over 25%. According to my analysis, I feel like the correction is over now and in the coming months we will see a new low in the markets which can very easily align with 6400 zone, which was the high of 2008, right before the financial crisis begin. I wouldn't be surprised to see 6400-6300 levels pretty soon, before the markets actually get back to normal.
In the above chart, you can see the important levels to observe:
(9300-9390 as a strong resistance right now, with immediate support at sub 9k levels which NIFTY reached yesterday i.e. on 21st April, 2020)
Now that NIFTY has broken 9000 level, we can expect decent short-sell setups in the next few days or even weeks and as you can check on Option Chain too that huge call writing has been witnessed at 9000 level with adding over 1.2 million new contracts today.
Now the next level to watch out would be 8845-8820. If this level breaks, which I believe it will today i.e. 22nd April, 2020, then we can see NIFTY flocking towards 8700 levels pretty soon, then 8200. And then 8000, being an important psychological level would be very crucial to watch. After that sub 7.5k level would be very very important to watch and if that breaks, markets will further weaken even more and I won't be surprised to see NIFTY at 6400-6800 levels in the coming month.
That's my overall view on NIFTY and on the markets as a whole. I would be sharing smaller time frame charts and analysis on that pretty soon so that you guys can see the market structure much more clearly.
I hope you guys have gained something valuable out of this post. I would really appreciate if you take some time out to comment your view on the markets, or if you liked my analysis and learned something out of it. And please do let me know whereever I was wrong. I would love to have suggestions.
Happy Trading, Folks!
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