Nifty 50 Index (NSE: NIFTY) Analysis

30 mag

Based on the daily chart for the Nifty 50 Index (NSE: NIFTY), here is the summary and analysis:

Key Levels:
- Current Price: 22,488.65
- 50% Retracement Level: 22,458.10
- 61.8% Retracement Level: 22,324.60
- Target Price: 23,600

Chart Analysis:
1. Upward Trend: The chart shows an overall upward trend, with the index making higher highs and higher lows.
2. Retracement: The index is currently in a retracement phase, falling from its recent high of 22,705.75. The price has retraced to the 50% Fibonacci retracement level and is approaching the 61.8% level.
3. Support Zone: The blue shaded area represents a significant support zone between the 50% and 61.8% retracement levels. This zone could provide strong support and potential for a rebound.

Potential Scenarios:
1. Bullish Scenario:
- If the index finds support at the 50% or 61.8% retracement levels and rebounds, it could continue its upward trend towards the target price of 23,600.
- Confirmation of a bullish trend would come with a strong bounce from the support zone and a move back above the previous high of 22,705.75.

2. Bearish Scenario:
- If the index breaks below the 61.8% retracement level, it could indicate a deeper correction.
- A break below this level could lead to further downside, possibly testing lower support levels not shown in the current chart.

Trading Strategy:
1. Watch for Support: Monitor the price action closely around the 50% and 61.8% retracement levels. Look for signs of a reversal or strong buying interest in this zone.
2. Buy Position: Consider entering a long position if the index shows a strong bounce from the support zone with increasing volume and bullish candlestick patterns.
3. Stop-Loss: Place a stop-loss slightly below the 61.8% retracement level to manage risk in case of a further decline.
4. Target: Aim for the target price of 23,600 for the long position.

Conclusion:
- The Nifty 50 Index is currently in a retracement phase within an overall uptrend. The 50% and 61.8% retracement levels are critical support zones to watch. A strong rebound from this zone could lead to a continuation of the upward trend towards the target of 23,600. Conversely, a break below the 61.8% level could signal further downside. Monitoring the price action and volume around these key levels will be crucial for making informed trading decisions.