NIFTY have extended its recovery beond 22100.
As I discussed in my sundays post a sustained trade above 22100 would keep INDEX safe from a risk of immediate colaps.
because 22100 happens to be a price and time equality level its significance for short term is going to stay considerably high, for next few days.
this level would come higher from next week onwards!
for medium term as i kept discussing throughout last week when markets were collapseing that a failure to break below 21710-21530 is unlikely to damage the medium term uptrend.
also it would keep the ascending flat topping pattern intact on NIFTY.
Until and unless that flat pattern is broken there wont be any clear positional trade on NIFTY.
market would keep doing this back and forth in broad range.
As an analyst I would expect a defining turn in next month because this market has been absolutely flat since last 3 months.
The monthly expiries of February march and now Apr have been absolutely flat.
Things cannot carry on this way forever.
Since last 3 months we have observed a repeated price pattern playing out during expiry week.
In which market pops higher closer to expiry and on first day of new series and post that for rest of the month things goes absolutely sideways.
Lets see whether similar pattern plays out this time or not!
short term update on NIFTY
for short term since 23rd and 24th,APRIL are critical cycle dates we would be looking for intraday lows for both these days.
A sustained trade below intraday lows of both these dates would drag index lower towards its price and time equality support of 22100.
A failure to sustain below lows would push index higher closer to 22600 on upside.
S&P;500;
S&P as expected have posted a good recovery holding its fridays low.
The move above 5006 have pushed index out of extreme weekness.
We discussed the importance of 5006 in my sundays article
So wont go in greater details now.
would like to add just one point here.
Current rebound is just a retracement of the major decline from 5265 once this rebound is done index is expected to drop very sharply in coming days which will add pressure on all other indices including NIFTY.
So watch out for that.
A negative daily close today or tomorrow would give early indications for resumption of another leg lower.
https://ganninsides.com/2024/04/21/the-buy-on-dipp-approach-is-about-to-face-its-real-test-now/
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