- The Nifty 50 has rallied a bit during the trading session on Tuesday to gain almost 1%.
- We continue to hang around the 50-Day EMA, an indicator that a lot of people pay close attention to.
- We have dipped below it previously, only to turn around and pop back above it, as seen in October of last year.
One of the Better Stock Markets Around the World to Be Involved In
I would also point out that the ₹18,000 level has been important multiple times, so the fact that we are hanging around at that general vicinity is a sign that we are perhaps trying to figure out whether or not the previous resistance is now going to offer support. So far, it has most decidedly it has, as the markets have been churning lately and a relatively tight range. Furthermore, the 200-Day EMA sits below so we are still in that range that typically will offer a pocket of support or resistance.
If we can break above the ₹18,400 level, then I think you see the Nifty 50 really start to take off again. Keep in mind that the Nifty 50 has outperform most other indices around the world over the last several years, and therefore it’s likely that we see the more of the same in the future. After all, if people are really starting to buy into the whole idea of “a soft landing” globally, then India of course will be one of the better stock markets around the world to be involved in.
That being said, if we were to turn on a break down below the ₹17,700 level, then we will almost certainly test the 200-Day EMA. Anything below that level could really open up the selling pressure, and I suspect that not only would the Nifty 50 start to drop, but at that point in time you would probably see several other indices around do the same. After all, if one of the out performers starts to stumble, that means the other ones that have been performing much worse will of course have quite a bit more downward pressure thrown at them. I think at this point, we are just trying to figure out what to do with ourselves but I do like the idea that we have been going sideways because it gives the impression that we are building up the confidence necessary to continue the longer term and reliable uptrend that we had seen.
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