Nifty breaks down from broader consolidation on daily chart.
The volatility in the last week was trailer, 24000 is the key holding floodgates.
As of 03:35 IST, 27 Aug
The Nifty breached trend line support on Monday, but recovers to close at par. 24000 is crucial support level, a breach od same to resume down trend with a technical target of 23000-22500 in line to our larger view.
Midcap outperformance may take a U-turn in below 24000.
In Intraday we may see Nifty move to 24000-23900 levels, in consistent with short OI buildup near 24000 puts.
01 The Larger Picture
At 24752 nifty has completed 61.8% retracement for the entire fall and now breaching below the trend-line support of 24000 may resume down trend to 22500-22000 level in the coming month.
23600 may act as 1st deterrence level post breakdown below 24000, on oversold readings and short-covering leading to re-testing of breakdown area near 24000.
Tips disappears, Tradzo stands with you.
02 Key Macro Risks Ahead
- 1.US sanction based Tariffs on India & China near BRICS summit.
- 2.Crude & Refining capacity around the world translating inflation in downstream crude products, Ureas shortage leading food security concerns
- 3.Escalation of US-Iran war to entire West Asia
- 4.Escalation from Pakistan front as US proxy to sabotage BRICS agenda of new global monetary system bypassing the US Dollar.
- 5.US Debt & housing collapse due to unwinding of Yen carry trade.
- 6.AI Bubble burst - AI maybe becoming popular and very successful tools in the right hands but for majority its just new dopamine, with sky high valuations and no signs of profits.
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Tradzo Research
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