Indian NIFTY Stock Index….Where do we stand now?

Indian NIFTY Stock Index….Where do we stand now?  India is part of the emerging markets.   In the last couple of weeks, there has been a huge investments in Emerging markets again.    The question that everyone should be asking is this short term or long term?   The goal of this article is answer this question.

To answer this questions, we have to analyze the higher time frames.   We will start with the monthly time frame.

Below is the monthly chart provided by eSignal.     It shows that the Market was in a long term bullish trend that started back Oct 2013.    After reaching 9000, the markets has been trying to go through a major pull back.   The resistance controlling this pull back is 7738.40.    Right now, it seems like we have broken the resistance.   However, this is not the case YET.     The chart is a monthly time frame where price can look like it broke the resistance within the month and then close at or below the resistance by the END OF THE MONTH.     Where it closes at the end of the month will determine everything.   What happens in the month can be a “distortion”, “draw down”, etc.     We can examine the lower time frames to determine where the “distortion” can go to.

2016-04-14_sensex_monthly

Below is the weekly time frame.   We have marked off the next major resistance where is where the monthly “distortion” can occur too.     If we break this weekly resistance level then price will have a high probability of getting into the cloud and can destroy the long term bearish momentum.

2016-04-14_sensex_weekly

We will monitor these levels closely.   If we break this weekly support, we will start to look for long term bullish opportunities within the market.

 

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About the Author Manesh Patel