Daily Nifty Update – 30 Sep 2019 … after a break

 

Nifty has mellowed down in the last few days after the almost 1000 point spike on the back of tax reforms announced by the Finance Minister. The trend has clearly changed from a downtrend to an uptrend. The important question now is will it continue, pause or reverse?

 

Nifty Intermediate-Term 

 

  • The 20/50/200 EMAs have converged and on the verge of accomplishing a BULLISH breakout (marked in Yellow)
  • This kind of breakout is normally very strong but if it fails the bearish repercussions are also very severe.   
  • A BULL Flag has also developed and will execute above 11600. The target will be above the lifetime HIGH.

 

Nifty Daily

 

Nifty Short Term

 

  • The BULL Flag is more clearly visible on the hourly charts. Buy near the lower end of the channel for better Risk to Reward.
  • The first sign of trouble will be a break below 11300 and then the subsequent violation of the support zone at 11200.

 

Nifty Hourly

 

Relative Strength Deteriorating

 

One red flag of the last few days consolidation is the stark underperformance of the Mid & Small cap sectors wrt the NIfty. Not a healthy sign if the broader market is selling off and Nifty is holding on. Eventually, Nifty will also crack below the support zones.

 

Relative Strength – Midcap & Smallcap Index

 

 

 

 

 

Daily Nifty Update – 30 Sep 2019 … after a break
Unleash the Ideavirus