Market Update

Nifty Daily Chart

After corrective bounce to 24300 on Tuesday, Today Nifty & BankNifty both has breached previous day’s low of 24079 & 56387 marking continuation of bearish trend.

• Support for Nifty is seen at 23450 (61.8% retracement), 22700 patten target of Double Top
• Support for BankNifty seen at 54700, 53000, 50% & 61.8% retracement level
• Resistance for the market is seen 24300-24500

It is now evident that gas shortage is affecting the industries, which will reflect in the economy and the stock market soon, though we believe there is no need to panic and this just a market cycle that goes through demand driven inflation followed by a supply shock exactly when demands has started to slow down, forcing consumers to pay higher prices in fear of scarcity.

This a classic Recipe of Recession, though India has diverse economy and it is very likely that routine life citizens gets much affected, but yes there will be economic consequences for industries and economy, while western economies are at the for front of major meltdown which may spread the chaos in global financial markets.

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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.

Read full of Analysis of 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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