Mentorship InstaView 30 July’21: Yet another Trend Reversal?


Nifty View: The Benchmark Nifty index keeps oscillating and keeps us all guessing which way will it eventually breakout. With Friday’s unit point negative close it was a disappointing close as the index slipped significantly from its intra-day high of 15,872. There is no dearth of volatility but definite ambiguity in terms of the underlying trend of the index. The 125min chart clearly shows a sequence of lower-lows and lower-highs which is indicative of a downtrend, but we also need to keep in mind that the long term trend of the index is still UP and there are sectors like AUTO and ENERGY which are oversold and due for a bounce. So let’s keep an unbiased view and take what the market delivers the week ahead. A retest of (15,900-15,930) is very much likely and in case the index sustains above 15,900 we will be heading for a new life high. Forget all this possibility if the index slips below 15,730.

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