- The Nifty 50 initially gapped lower to kick off the trading session on Monday.
- Mainly, I believe in reaction to the tariffs in the United States being levied on Mexico, Canada, and China.
- In other words, it's not necessarily an Indian thing or problem, but it is more of a risk-off sentiment.
- This is a market that is being peripherally hit, not necessarily being directly targeted.
If the global economy starts dealing with a significant trade war, that obviously will have ramifications for India, as well as many other places. It's worth noting that the market has turned around quite a bit from the initial gap lower and now is trying to go positive.
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So that's a good sign, but I think you've got a situation where we still have to watch the 23,600 rupee level because that's where we had pulled back from previously and it's also where we have the 200 day EMA Interestingly enough. We also have the 50 day EMA there as well and it looks like they are trying to cross but quite frankly the so-called death cross is almost always a horrible signal It's almost always way too late the time to short the NIFTY 50 would have been basically in October of last year.
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Trying to do it now would be tantamount to catching your money on fire. That being said, if we can break above both of these moving averages, I think it opens up a move to the 24 rupee level, possibly even the 24,500 rupee level and beyond. Things on this chart do point to a bit of a bounce, but I also recognize that it could be very volatile as we are in the midst of trying to form a basing pattern.
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