India's Nifty 50 - Quick Note
We have many subscribers from India, so we wanted to analyze the Nifty 50 to help them Make Money! India is having their Presidential election on June 4th. Looking at previous elections, the Nifty 50 often (but not always) rallies into the election, but then tends to pull back after the event.
Looking at the weekly chart of the Nifty 50, we can see it is trending higher on the 10 and 21-week EMAs, and it looks poised to hit one of the yearly Fibonacci Pivot Points. The R1 Fibonacci Pivot Point is at $23,412 (3.4% higher), while the R2 Fibonacci Pivot Point is at 25,093 (11% higher). Notice the significant Dollar Volume buying into the Nifty Fifty (volume bars on the bottom of the chart are Dollar Volume bars).
Turning to the daily chart, the Nifty 50 follows a 42 trading day cycle bracket with 21 trading day half cycles. The last half-cycle trough occurred on 3/27 and the price moved higher from there. Price is nearing the upper channel line and may meet resistance there as it has before. It could grind higher alongside the upper channel line, but sooner or later it should pull back. RSI is bullish over 50, but the Stochastics indicator appears oversold and could pull back as the Nifty nears the tail-end of the cycle bracket. Weakness could be expected around the end of April, but a new cycle bracket begins on April 30th. Let’s see if our Cycle Forecasts point to a negative or positive cycle heading into May. Paid Subscribers will get to see our Cycle Forecast for the Nifty Fifty for all of 2024.
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