What is happening in the Indian share market and review of Nifty 50
In this post today we are focusing on what is happening in Nifty 50 and Bank Nifty. We will be reviewing their charts today and we will let you know our opinion about the market and what do we think about the current price action in the charts.
Currently India Market is going through a bearish phase and this is happening due to the spikes in COVID-19 cases. The Second wave has hit India and this month we also got the lowest manufacturing PMI in the last 8 months. FII's have pulled out some money and booked their profit. These are the major reasons behind this unstable wave in which the market is paddling these days.
So first let's get started with the Nifty 50 chart, Let's take a brief look at the nifty 50 chart, the time frame is 1 hr as it is a very stable time frame to judge the price action.
So we have drawn two lines here one is at the level of 15129 and the other one is 14743 and lets us tell you here one point lines cant be at a specific price, lines just give the idea other price resisting and support always have an area. so they can not be completely drawn by lines. hope you get this point, So now the between these two lines the price of nifty was consolidating and if you look closely that's a range formation and in that range, the rectangular area we have drawn is the second resisting area for nifty 50, first one is the yellow line at 14745. and below a small line is also drawn this is becoming the latest buyers reaction area which means this is becoming a support zone now. Green circles are indicating the sellers, look how they are coming from that yellow line, and yellow circles are indicating buyers reaction and look closely both have the strength now and that is indicating that both buyers and sellers have strength so conclusion will be that when both parties have the strength then that means that this consolidation might continue and price can stay between, 14950 to 14500. If you looking for the time to invest then let nifty 50 survive this area first.
Now let's see Bank Nifty and analyze that.
Bank Nifty is on the bear side as we can see it. The yellow line is the last resisting level and the green the second and the rectangular area we have drawn was a support area and it has become a resistance area, which is clearly indicating that sellers are expanding in the nifty bank. if buyers have to go up now they will have to struggle a lot and need a lot of power to go up and if the price goes further more down then the next level will be at 32000-31900.
So we have covered every perspective of the price action in both Nifty 50 and Bank Nifty. if still you have any query reach out to us on our email ID.
Disclaimer - This information that we are providing you is our personal opinion, we are not saying our opinion will be 100% true as the market is very uncertain, and we highly recommend you consider this knowledge from information and an educational perspective. Before making any decision regarding investing please first comprehend the logic.