NIFTY50 Ready to Big Dump toward 20250 Levels ?

6 May

NIFTY50 Technical Chart Analysis

NIFTY50 is currently in a high greed zone, attracting investors eager to join the bull rally. Let’s examine the key scenarios expected to play out over the next few days:

Chart Analysis:
NIFTY50 is forming a bull flag within a rising channel. Historically, this pattern tends to lead to a downside breakout, which makes any upside breakout highly risky.
My outlook is bearish. The last breakout resulted in a 22% gain, but if NIFTY50 breaks down below 22,110, we could see a significant fall. Breaking this level may result in a freefall to 21,000.

Support Levels:
Strong Support: The $21,000 level is critical. However, in the case of any negative news globally or in the Indian market, prices could potentially reach 20,700 and even 20,200.

Fib Retracement Supports:
0.5 Fib Support: 20,717
0.618 Support: 20,252
Keep an eye on these Fib support levels. If the market reaches them, we may witness a strong bounce, which would provide good entry opportunities.

Resistance:
Watch the rising wedge channel resistance and support closely, as they are crucial indicators.