Nifty closed at All time high 15435 this Friday after the monthly expiry. Now what next can we expect from the index as it is coming out from nearly 2 months of not clear trend one side but after closing above previous all time highs the sentiment is again bullish.
Well, we are overall bullish on NIFTY but expecting a minor pullback ticket to the next bull phase because a Harmonic Bearish Alt shark was spotted on the index.
As this chart shows that the reversal zone for nifty is 15475 and if we pullback from here the next buying zone is at 14960 which is a very strong support according to technical analysis but if somehow bulls manage to close above 15475 (+- 10 points). This level will act as a very strong support.
Getting to the overall sentiment which looks quite bullish right now and assuming that we close above our reversal area what next might happen??
As you can see in the above chart NIFTY made a similar pattern in October series and after one month of accumulation there was a very strong rally which paused at the end of February 2021 but now the sentiment is again bullish and with fall in coronavirus cases bulls look again ready to hit all the walls of worry. Descending Trendline breakout here followed by a very healthy pullback is cherry on cake.
Also keeping in mind the Fib resistance 1.618 which was at 15413 from where the market got rejected last time and made a short term top is now breached and we are expecting a very strong rally ahead but with shakeouts to flush out the retailers.
All in all; the structure is quite bullish and we are expecting a minor pullback which might offer us a ticket towards next phase of bull market with high reward and low risk.
All these views and charts were shared on our telegram channel and twitter handles well in advance and this move was anticipated by us which gave quite good returns looking at the risk and reward ratio.
Disclaimer- This post is only for educational services, we are not liable for your profit and loss. Kindly consult your financial advisor before taking any decisions.
PEACE.