Market Update
Harsh Patel
Founder
The Indian stock market is set open -3.35% lower to 23750, as oil & gas supply shocks the world from war in West Asia, Oil prices rise above $100/bbl.
Nifty Weekly Chart
Nifty50 confirmed “Double Top formation” & Head & shoulder Breakdown on weekly closing, which technically marks End of Bull Cycle, theoretical pattern target is seen at 22800, 21750.
From trading perspective, watch out for 23400-23500 as support zone for today where selling might get arrested for today, below same market may find minor support at 22700 level which is 78.6% retracement zone, however it is unlikely to hold selloff to 21750-21900 levels.
The chart structure is bearish in the short & medium term, however pullbacks may not be ruled out and market may keep giving opportunities to sell on bounce. you may see oversold indicators which are likely indicating strength of down trend and solely not a signal to buy the dip.
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In this Bull run Nifty RSI hit 100 in 2025 on the yearly chart, suggesting extreme overbought levels while trailing PE of more 22 represents overvaluation following a 250% rally from COVID low of 7511, that vastly outpaced economic growth lead by euphoria among the new age investors. Read summary of Analysis on Nifty50 here for broader view.
Nifty monthly chart
Tradzo maintains cautious view due to global macro-economic scenarios and advice to reduce weak long positions due to valuation concerns and downside risks.
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Tradzo Research
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