NIFTY 50 - Short-Term Analysis

Chart Structure Overview:

Pattern Formation:
NIFTY has completed an Expanding Triangle pattern at the top.
Before starting the Expanding Triangle, a Final Exhaustion Gap was created — typically a strong signal of trend reversal.
Volume Behavior:
During the Expanding Triangle, volume gradually decreased, indicating loss of momentum.
Volume pattern confirms the weakening of the uptrend.
GAP Analysis:
Past continuation gaps have driven the uptrend.
Now, the final gap behaves as an Exhaustion Gap — signaling potential trend reversal.
Expectation: Another confirmation gap to open on the downside to validate the reversal.

Price Expectations:

Target Level Comments
Target 1 23,300 First major support zone
Target 2 22,800 Stronger support zone aligning with previous Fibonacci projections
Immediate downside move expected after a minor bounce/confirmation setup near the current zone (~24,300–24,400).

Technical Key Points:

Expanding Triangle Completed: Market structure topped out.
Exhaustion Gap Formed: Clear early sign of exhaustion.
Volume Decreasing: Confirming distribution phase.
Past GAP Analysis:
Continuation Gaps drove the trend up.
Final GAP now signals a possible major trend change.

Summary:

NIFTY appears to have completed its up-move after forming a final exhaustion gap.
The loss of momentum inside the expanding triangle pattern, coupled with the exhaustion gap at the top, signals that a short-term bearish reversal is highly probable.

In the coming days, once the market confirms the downward structure (especially if a downside gap occurs), a sharp fall toward 23,300 and then 22,800 can be expected.

Short-term trend: 🔻 Bearish below 24,600.

Disclaimer:

This analysis is for educational and information purposes only. Not investment advice. Always trade with strict risk management.