Geo-political volatility fuels negativity

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Nifty ends down following weaker world cues because the contraction in vary (comparatively) which was noticed for the previous couple of days gave a draw back breakout, this was additional signaled with exhaustion in breadth the market has witnessed in the previous couple of days.

The haunting information of capital beneficial properties tax which was making rounds on social media was additional cleared at the moment, regardless of that, it’s the geo-political cues that will drive relatively than home information and rumors.

Technically it is a resistance which was beforehand talked about and the market is dealing with that at 16,900 – 17,050, an enormous draw back hole zone of February 24. Our volatility bands which have been contracting for a while (half-hour timeframe) are actually increasing indicating the development might additional increase. As per the Bar chart, the vary for intraday stays fairly elevated with ATR at 370+ ranges.

On Each day TF, brief time period development stays bearish so long as the Nifty is under 17,342 and any detrimental sentiment shall be magnified given the present volatility. Therefore, the momentum and breadth need to be robust and sustained and together with that, it will need to have excessive optimistic readings to reverse the development on the optimistic facet. Resistance for Nifty stays at 17,030 – 17,340 whereas draw back assist is at 16,410 – 16,090.

(The writer is technical analyst at Finversify)

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