Nifty 50 Cracks 1,000 Points from High; Time to Go Long?

  • Stock Market Analysis

The Indian benchmark Nifty 50 index again witnessed a sharp cut on the last day of the week, falling 115 points to 21,879, by 11:16 AM IST. The low of the day was 21,777.65 which seems to be a knee-jerk reaction from investors at the opening tick.

The main reason that is making investors steer clear from riskier equities is the escalating tensions between Israel and Iran. In a recent development, Israel reportedly retaliated through a strike on Iran which is what triggered fears over a new war, resulting in another red day in the global markets.

However, if you look at the index, it has already fallen around 998 points from the high of 22,775, marked on 10 April 2024. To some, it might seem like the beginning of a downtrend, but the index has exactly come down and respected its precise support zone of 21,700 - 21,800. This demand level is quite crucial as it is where the previous reversal took place, back in March 2024.

Today as well, the index took the support from the same zone and is not trying to reverse back towards the north. As the market kept falling since 10 April 2024, there were a couple of gaps as well left on the charts. In an attempt to pare some of the losses, Nifty 50 might look to close these gaps.

The nearest gap will be filled when Nifty 50 crosses 21,961, meaning 80-odd points can still be capitalized on by bulls, which could be the least one should expect in a reversal. After today’s fall, the RSI (daily, 14) is showing a reading of 39 which is not oversold but the lowest in 2024 so far. This could be another indication of a probable reversal, especially when coupled with the strong support one Nifty 50 touched today.

In short, after a 1,000-point loss, it might now be a time to cut short positions and look for a mean reversion trade. However, a firm closing below the support might extend the ongoing fall.

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  • Prerna 22april @Prerna 22april
    gmr infra target pls
    Like 0
  • Mahesh Bamaniya @Mahesh Bamaniya
    सर सोमवार की बाजार क्या केहती हे
    Like 0
  • Jayesh Parmar @Jayesh Parmar
    sir any news Bandhan Bank buy 182 stopp loss target 🎯
    Like 0
  • ASHIT THAKER @ASHIT THAKER
    we can follow the Fib count of retracement to see if it crosses at least 38.2 %
    Like 0
  • Ravindra Joshi @Ravindra Joshi
    Great write-up 👍
    Like 1
  • Noushad Babu @Noushad Babu
    👍👍
    Like 1
  • Jayesh Parmar @Jayesh Parmar
    great news
    Like 1
  • Moti Manoj @Moti Manoj
    u r always 💯.
    Like 1
    • Aayush Khanna @Aayush Khanna
      @Moti Manoj Thanks :)
      Like 0
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  • Bharath Kumar @Bharath Kumar
    Which app is best this or trading view?
    Like 0
    • vridhi Jain @vridhi Jain
      trading view
      Like 2
    • Anup Kumar Patel @Anup Kumar Patel
      @Bharath Kumar for charts i'd say trading view
      Like 0
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  • ajay parab @ajay parab
    Thanks sir I appreciate your effort and time
    Like 2
    • Aayush Khanna @Aayush Khanna
      Like 1
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  • Francis Barrett @Francis Barrett
    no.
    Like 0
  • Rahul Soni @Rahul Soni
    🌹
    Like 0

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