Nifty 50 (NIFTY.NDX)

Short term

Nifty 50 has broken the falling trend channel down in the short term, which indicates an even stronger falling rate. The price has had a strong fall after the negative signal from the head and shoulders formation at the break down through the support at 24768. The objective at 23450 is now met, but the formation signals further development in the same direction. There is no support in the price chart and further decline is indicated. In case of a positive reaction, the index has resistance at 24000 points. RSI is below 30 after the falling prices of the past weeks. The index has strong negative momentum and further decline is indicated. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically negative for the short term.

Recommendation one to six weeks: Negative

Medium term

Nifty 50 has broken through the floor of a rising trend channel in the medium long term. This indicates a slower rising rate at first, or the start of a more horizontal development. The index has broken a support level and given a negative signal for the long term trading range. The index has support at points 22000 and resistance at points 25000. RSI below 30 shows that the momentum of the index is strongly negative in the short term. Investor have steadily reduced the price to sell the index, which indicates increasing pessimism and continued falling prices. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The RSI curve shows a falling trend, which could be an early signal of the start of a falling trend for the price as well. The index is overall assessed as technically slightly positive for the medium long term.

Recommendation one to six months: Weak Positive

Long term

Nifty 50 has broken the floor of the rising trend channel in the long term, which indicates a weaker initial rising rate. 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 RSI curve shows a falling trend, which could be an early signal of the start of a falling trend for the price as well. The index is overall assessed as technically slightly positive for the long term.

Recommendation one to six quarters: Weak Positive