Nifty: Bulls In ‘Trapping Zone’; Look Ready To Slide Lower

Nifty: Bulls In ‘Trapping Zone’; Look Ready To Slide Lower

Satendra Singh  | Nov 08, 2019 10:45

On analysis of the movements of Nifty 50, in different time frames, I find that the globally equity bulls look to have been trapped in a trapping zone at the peak levels; especially at the time while the pyramid of hopes under still under threat of global economic slowdown. On Thursday, the Chinese commerce ministry said the two countries have agreed in the past two weeks to cancel trade tariffs in different phases, without giving a timeline. Secondly, growing hopes among the equity investors shrunk even more in doubt soon; when Reuters reported that the plan faces stiff internal opposition in the U.S. administration. No doubt that most of the global equity indices have attained their peak levels now amid growing hopes of a partial deal between the U.S. and China, but the overall situation at Sino-U.S. tariff tussle still looks too grim to thrash this pyramid of hopes.

On the other hand, exhaustion seen in U.S. equity indices on Thursday looks evident enough to enhance the prevalence of bearish sentiments in global equity markets. On Friday, Nifty 50 is looking under bearish pressure due to thick presence of equity bears above the level of 1212; which may provide stiff resistance on every upward move. On the other hand, Nifty 50 looks to be facing selling pressure since its opening on November 8th, 2019.

Finally, I conclude that a heavy build-up in put options at much lower levels indicates the support levels of Nifty 50 much below from the current levels; which may encourage bears to remain in command during the upcoming week. I find that if Nifty 50 finds a weekly closing below 10,878; it will confirm the continuity of a downward trend during the upcoming weeks. On the other hand, only a sustainable move above the level of 12,108 can only save the existence of bulls to remain at current levels. For watching my upcoming videos on Nifty 50 and Bank Nifty, subscribe to my YouTube channel ‘SS Analysis’

Nifty 50 - Daily Chart

Nifty 50 - 4 Hr. Chart
Nifty 50 - 1 Hr. Chart
Nifty 50 - 15 Minutes Chart

Disclaimer

1. This content is for information and educational purposes only and should not be considered as an investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital be involved which you are prepared to lose.

2. Remember, YOU push the buy button and the sell button. Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from an investment and/or tax professional before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.

Satendra Singh

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Vivek Shrivastava
Vivek Shrivastava

Wrong analysis and false prediction - Proven by Markets today, specially BankNifty  ... (Read More)

Nov 11, 2019 11:25 GMT· Reply
Anand Shankar Mall
Anand Shankar Mall

Nifty 50 Support 11882 , target 11885 hold at cmp 11885  ... (Read More)

Nov 11, 2019 05:06 GMT· Reply
BHASKARJYOTI GAYAN
BHASKARJYOTI GAYAN

You shameless guy back again to post your stupidity.  ... (Read More)

Nov 11, 2019 03:43 GMT· Reply
sasi kumar
sasi kumar

Please put the clear information either chart analysis or study which ever you are giving as views to others. Don't ever say something outline as information and confuse others. Your chart study is not a perfect  ... (Read More)

Nov 08, 2019 23:06 GMT· Reply
SURESH SAHANE
SURESH SAHANE

Out of 10 days first day u got peofit and 9 days u r looser  ... (Read More)

Nov 08, 2019 14:41 GMT· Reply
gitesh shah
gitesh shah

What are your Short term, Medium term targets? In 2 weeks and 2 months?  ... (Read More)

Nov 08, 2019 13:06 GMT· Reply
Arun Vakharia
Arun Vakharia

very good article  ... (Read More)

Nov 08, 2019 11:32 GMT· Reply
Arun Gupta
Arun Gupta

🐕  ... (Read More)

Nov 08, 2019 10:54 GMT· Reply
Upendra Karambelkar
Upendra Karambelkar

I dont think he ever reads comments on his articles else we would have seen some change. I think we are wasting our time reacting to his articles.   ... (Read More)

Nov 08, 2019 10:22 GMT· Reply
Manas Pal
Manas Pal

one day he prove "he was right" - but when that day come he doesn't know.  ... (Read More)

Nov 08, 2019 09:21 GMT· Reply
Amal George
Amal George

Mr Pessimistic  ... (Read More)

Nov 08, 2019 07:47 GMT· Reply
Sumeet2018
Sumeet2018

Nonsense continues...  ... (Read More)

Nov 08, 2019 07:01 GMT· Reply
Sanjay Jain
Sanjay Jain

YOUR S&P AND GOLD BOTH SL HITS NOW ANY LEVELS FOR FURTHER TRADE .  ... (Read More)

Nov 08, 2019 06:49 GMT· Reply
Aditya patankar
Aditya patankar

I'm sorry sir but till 2 weeks ago, i was with you till breakout but now you constantly saying downside,more downside. I belive on data but you also indicated at 11750 crossover will change or reverse your opinion.Now we at 12,000 & you still not changing your opinion, this is absolutely biased. please redo the calculation sir. Surely it'll correct eventually but not every week .   ... (Read More)

Nov 08, 2019 06:41 GMT· Reply
Chandresh Kasvala
Chandresh Kasvala

Analyst looks like only Bear.....not a single post for upmove.......pathetic.   ... (Read More)

Nov 08, 2019 06:07 GMT· Reply
SWAPNIL KADAM
SWAPNIL KADAM

OMG How much fall is expected?? everyday you are saying downfall will happen , but i am observing each downfall is absorbed. till what level ur bearish view continues? Or you are just entertaining us with ur view everyday..  ... (Read More)

Nov 08, 2019 05:48 GMT· Reply
Sandeep Heera
Sandeep Heera

most negative analyst I have ever know. I never read anything positive from this guy .  ... (Read More)

Nov 08, 2019 05:28 GMT· Reply
Ajit Gattupalli
Ajit Gattupalli

You continue to write about Nifty going lower. I have been observing from 2 weeks, Nifty is heading higher only. When would you be on the positive side on Nifty? That is when I need to short the Nifty...  ... (Read More)

Nov 08, 2019 05:25 GMT· 1 · Reply
Satya Nellipudi
Satya Nellipudi

You please see the reality   ... (Read More)

Nov 08, 2019 05:24 GMT· Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+