Nifty 50 Makes a New High: Is It a Breakout?

  • Stock Market Analysis
  • Editors Pick

The broader market Nifty 50 index had been more or less moving sideways for some time. Although when zooming out, the large-scale uptrend is clearly visible, the short-term hiccups are also there.

Now, as the index is at a new all-time high of 22,312.65, by 12:55 PM IST, surpassing the previous high, should you believe in this breakout?

Well, firstly this is an election year, and before the actual event, I am not expecting any large one-sided move. If you analyze closely, this up-and-down price action has been going on for a while.

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On 2 February 2024, the index surged past its previous resistance and made a new high with a slight margin and that was it. The next few days were followed by a brief correction. On 19 February, the index again made a new high and the market consolidated around the highest levels for the next few days.

Today, the same price action has been repeated but the next few days are important and should be watched closely. A very strong rally is not expected and therefore aggressive long positions should be made carefully if traders are looking to capitalize on this up move. A few days of consolidation and a minor correction can easily decrease long options premiums.

On the downside, there seems to be new support in the making, that is 21,850 - 21,900. This zone can become a good opportunity for traders trying to find a dip to participate in this rally. As the very short-term trend is more of a sideways - one day up and the other day down, going long around the support zone makes more sense.

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X (formerly, Twitter) - aayushxkhanna

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100
  • SAMBI REDDY ALLU @SAMBI REDDY ALLU
    Sir, weekly once your article on nifty is required please
    Like 1
  • Mahesh Dave @Mahesh Dave
    ni
    Like 2
  • namami ghosh @namami ghosh
    excellent💯👍👏
    Like 0
  • NIRAV JARIWALA @NIRAV JARIWALA
    BUY 06- MARCH BANK NIFTY 46400 PUT BUY 185 TARGET 284-315-346
    Like 1

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