Indian market has lost momentum recently. But there is one chart that's painting quite a different picture. The Chart is Nifty weekly chart.
Here's Nifty weekly chart
Market has a design of its own. On a daily chart - Nifty looks directionless but on weekly chart - Nifty has been holding on to very important support i.e. 50 week moving average for weeks now. That's quite bullish. In Bull market - one should always give benefit of doubt to Bulls.
That's not all - Nifty has created a well defined support around 8000 on daily chart over last 7 months.
What does this mean?
Nifty has created a well defined support base around 8000 on daily chart and seems to be holding 50 week ma on closing basis. It means Nifty is establishing a base around current levels for another rally. In Bull market - the benefit of doubt goes to bulls. It means 80% probability that support will hold. The only risk right now: Major Global market correction. In that case - all bets are off but in absence of that - this can be great buying opportunity.
Please share your comments on what you think of above
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers