NIFTY Possibilities Compared With India VIX

7 Tem 2022

Even though the chart is self explanatory, I have tried to compare NIFTY with INDIAVIX

Blue line is INDIAVIX
Brown line is NIFTY
Dashed red line is trendline support and NF breaking above that
Light yellow line is support line for INDIAVIX

2 possibilities exist -

1) India Vix continues to trade below or near the support line, and we may see some price stability for NF. Before embarking on the next journey, we may inch higher or consolidate around these levels.
2) The India Vix rises again, and the price begins to fall from its current levels.

Another thing I noticed unfolding on both indices charts is this -

1) NF & BNF on DTF are almost at the upper end of Bollinger Band
2) Trading above 20/50 EMA
3) Both indices have a rising window candlestick gap on DTF ( July 6th and July 7th ) -
a) It is a bullish continuation candlestick pattern
b) A Rising Window candlestick pattern is a 2 candlestick pattern
1) There must be an empty space between the two candlesticks in the pattern where the prices do not overlap
2) Pattern is characterised by a price gap appearing between the first candle's high and the second candle's low
c) It is possible for the first of the two candlestick patterns to have a red coloured real body, however the most likely scenario is two green coloured candlesticks that
make up the pattern ( this has been established with the candles formed on both indices on July 6th and July 7th )

For July 8th, from my limited knowledge, 2 possibilities exist -

1) We fill the gap on the downside and close below the high of July 6th candle. This would nullify the pattern and price may head down again as bears have taken the control during this upmove
2) We go down and close just above the high of July 6th candle without completely filling the gap. If this happens, bullish momentum for the time being should continue

Let's see which way the story unfolds. Happy Trading!

Disclaimer -

- The view expressed here are my personal views. I am publishing this for my own records and what I see on charts.
- If you're referring to this, please consider this ONLY FOR educational & research purposes.
- Past performance is not a guarantee for future predictions
- Any decision you take, you need to take responsibility for the same. DO NOT consider this as an investment suggestion.
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- Do your own analysis and consult your financial advisor before investing.

TIA!