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Nifty 50 Breaches Recent Support
Published Updated Wed, March 7 10:58
Hi there Traders,
Flipping through some charts this morning and noticed what could be a classic topping pattern in the INDIA 50, or Nifty as it’s affectionately known as.
What tends to happen with government debt, is that they sell new debt to pay off maturing debt. Indian government debt in recent times has been substantial and fundamentally, they could be moving towards a debt crisis.
Let’s take a look at a couple of charts that could potentially support this theory.
First, the daily Nifty 50 chart.
INDIA50
After a a strong uptrend we saw quite a sharp selloff across SPX, SPI DOW, NDQ and the Nifty. However, the INDIA 50 hasn’t quite seen the same recovery as the others. Let’s zoom in on these levels on the hourly chart.
INDIA50
In the chart above, you can see that both support and resistance were tested multiple times, and often the longer the range the more explosive the breakout (up or down). As you can see price has breached support levels which could indicate that lower levels will be seen. The next few weeks will be important to watch to see whether price declines further or reclaims support levels.
As always, watch your risk and trade safely.
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