Nifty 50 (NIFTY.NDX)

Short term

Nifty 50 shows weak development in a falling trend channel in the short term. This signals increasing pessimism among investors and indicates further decline for Nifty 50. The index is testing support at points 22830. This could give a positive reaction, but a downward breakthrough of points 22830 means a negative signal. The index is assessed as technically neutral for the short term.

Recommendation one to six weeks: Hold

Medium term

Nifty 50 has broken through the ceiling of a falling trend channel in the medium long term. This indicates a slower falling rate initially, or the start of a more horizontal development. The price has reacted back after a false break of the head and shoulders formation. A significant penetration of 22779 will again give new negative signals to the index, while a break of the opposite side of the formation will be a strong positive signal. The index has support at points 22000 and resistance at points 23600. The index is overall assessed as technically negative for the medium long term.

Recommendation one to six months: Negative

Long term

Nifty 50 has broken through the floor of a rising trend channel in the long term. This indicates a slower rising rate at first, or the start of a more horizontal development. The price has reacted back after a false break of the head and shoulders formation. A significant penetration of 22779 will again give new negative signals to the index, while a break of the opposite side of the formation will be a strong positive signal. The index has support at points 18600 and resistance at points 26200. RSI diverges negatively against the price, which indicates danger of a reaction downwards. The index is overall assessed as technically neutral for the long term.

Recommendation one to six quarters: Hold