“NIFTY, as discussed earlier this week, holds significant importance from a time perspective. In fact, today’s intraday low, regardless of price, will be critically important on a closing basis. A sustained close below today’s intraday low would serve as a definitive signal for an impending pullback across all indices. Conversely, if the index maintains today’s intraday low on a closing basis, the current trend is likely to persist. Following today’s cycle date, the significance of May 15th’s intraday low of 24494 has been entirely nullified. Prudence dictates waiting for clear confirmation here. On the upside, NIFTY’s key resistance level would be 25300 on the spot.”
UPDATE on MAY 28th.
“NIFTY is consistently closing below its Monday’s low of 24900. As we discussed Monday afternoon, this isn’t a positive sign and could well trigger a pullback, potentially targeting 24462. If that level gives way, then 24255 is firmly on the cards. Tomorrow, May 29th, is also a crucial cycle date for us. Frankly, the last fifteen days have been incredibly dull for index traders. Let’s hope for some renewed energy and action from tomorrow onwards.”
UPDATE on MAY 29th.
NIFTY’s bearish standalone setup is currently being cushioned by optimism in global markets, introducing a layer of complexity to its immediate trajectory. This dynamic warrants close observation.
Our focus is on the S&P 500, where we expect a key turn either today or tomorrow. If this plays out, NIFTY should follow its anticipated downtrend. But if the S&P 500 doesn’t cooperate, NIFTY might briefly punch above its May 15th high of 25116 before a swift and severe drop towards 24200-23800 by mid-June.
The next two sessions for the U.S. markets are therefore critically important in determining NIFTY’s short-term direction. We await these developments with keen interest.
gann,insides 