By Nifty Trading Academy Research Team – The technical charts play a significant role in the stock Market. Furthermore, to determine the market movements, the charts help in giving the perfect view. In addition, the Nifty is currently trading at very critical levels. In fact, it would not be wrong to say that Nifty is at break or make levels. Also, the budget is also not very far. This makes the current Nifty levels very interesting. Therefore, in this article, we shall see where the Nifty can move on the basis of chart reading.

Important Levels that Nifty Can Touch

• Upside breakout till Range of 11,000

If the Nifty gives a big breakout from the levels of 10,500, the Nifty can touch the range of around 10,800 to 11,000. The aggressive buying can give Nifty multiple breakouts. Consequently, the Nifty shall break all the resistance levels and go on to touch 11,000. Therefore, the investors must look to book their profits at such levels.

• Downside Crackdown till Range of 9,695 – 10,000

If there a big selling breakdown in Nifty, it can fall till the range of 9,695 to 10,000 range.  Since we know the technicalities of charts, 10,500 is a very crucial level. Huge selling from here on by the DII’s and FII’s can test important lower levels of Nifty. Therefore, the trader must keep the big downside position in mind while taking big positions at current levels.

• Mild Lower Breakdown and Recovery

Since 10,500 is critical levels on the charts. The Nifty may show milder breakdown and recover from thereon. In fact, in case of mild selling the Nifty can be in the range of 10,300 – 10,400. Furthermore, upon touching the lower range, the Nifty may rise again to 10,500. Therefore, any trader or investor looking to buy stocks may wait till the Nifty starts falling and buy at lower levels.

• Mild Upper Breakout and Correction

Considering that the Nifty is at important levels of 10,500, the bull phase of the market may continue. The Nifty may test the upper band of 10,600 – 10,800. In fact, on touching the suggested levels of the range, the Nifty may come back to the levels of 10,500 again. Hence the investors or traders in the market may book their profits at the higher levels and re-enter again at the lower levels on Nifty.

One may look at the Nifty chart below:

Short Summary for Quick Understanding

One must note that the market right now is highly over bought and there is negative divergence with bearish engulfing. So, if you consider the risk to reward ratio, there is limited risk with great potential for returns. There are two possibilities in the market right now:

1. There is limited margin in the upside moment.
2. If the market is moving down, then there is very good potential. The next support level can be 10,100 and after that 9,500 levels can be seen. The only condition is, the market must not close above 10,540.

The Current Market price is  10491 Close On date 27/12/2017

Disclosure

The Nifty chart is for educational purpose only and not meant to be used elsewhere. Nifty Trading Academy students may possess the understanding of the future levels on Nifty. Furthermore, you may take a position in the market after consulting a chart analyst. In fact, you may reach us for learning and understand the charts on Nifty.

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