Nifty Analysis - Weekly and Daily Charts

Dear Friends,

So I am here with the Weekly Chart (Long Term) and the Daily Chart of Nifty. My observation based on the charts are following:

The Daily Chart

The Daily Chart of Nifty made me recall the previously well mentioned lines - Line 1 - The Main Downtrend Line, Line 2 - The Secondary Downtrend line, Line 3 - The Previous Important Support Line. In addition to that I have drawn a new line - line 4 - The Current Uptrend Line.

Looking at these lines, the current position of Nifty looks like it is at the resistance of Line 2. If this is breached, there is the possibility of Nifty touching Line 1, which is very important resistance as it has not been breached even on intraday basis for this entire Bear Market which started in January. The level comes at around 4530-50.

The support of Line 3 (around 4510 for Monday) is also acting as a resistance and the interesting point is it is nearing Line 1, so the resistance becomes even more powerful.

The Current Uptrend Line - Line 4 is steep and will hold only if the buying is sustained with the same vigor that has been so far in the latest upmove. For that, a close above 4285 (which also happens to be 34 Period EMA) is what bulls should take care of, failing which this line will be violated and more downside to 4150 levels can also be a near term possibility.

The Weekly Chart
I have drawn the Fibonacci lines on the Long Term Nifty Weekly Chart. We can see Nifty went to very near to the 50% retracement level in past weeks. If it breaches it in coming weeks, the next weekly support comes very deep around 3000 level. However, one thing to note down is for two consecutive weeks volumes are impressive.

Conclusion: I strongly hope this week is going to tell us some direction, however, there is all the possibility that we may have to wait even more.

Disclaimer: My "analysis" here is analysis in letter and spirit and should not be taken as "trading advice". Trading in Stock Markets is full of risks and one should consult professional advice before initiating any trade.