Weekend Views On Nifty - Manoj Bhagra

The daily chart below shows that we are still struggling to conquer and close consistently above the 20 period MA. We are moving in tight ranges but unfortunately the bias is down. We have a bull flag happening, marked in pink lines but this only gets confirmed once we trade above 3070/3115 levels which of course is also near the 3160 levels we are hoping for our inverse H&S breakout.

Speaking of pattern failure we will negate the flag pattern if we fall below 2750. I am still betting on 2700/2750 to hold (wishful thinking again!) and as far as going down to check the lows goes, I am of the view that till 2500 the Nifty is safe for bulls - no worries.

For now 2750 to 2950 (breaking either should generate about 200 points) is the new range we have made, and between this range we have 2860/70 an an important pivot, which if once crossed, would give a fast 100 points to the upside.

Once again, I wish to reiterate with so much of wild swings in global markets and news-based rises and falls (which is what we are doing off late), just make sure that if in doubt, just be OUT and for people who are in, the magic phrase coined long long time back is USE STOPS!

"Everyone has his burden. What counts is how you carry it." - Merle Miller.