Nifty Update

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 Nifty daily chart


Nifty 2 hour chart


Analysis

As seen in the above daily chart, prices continues to be moving in a stiff range of 17700-17900 and consolidating near to the resistance of the falling trend line. There are also multiple of resistances placed at these levels where 20 EMA (red) and 50 SMA (blue) is placed. I will continue to hold my downside levels as mentioned in my previous update with resistances placed at 18100 levels. RSI has also relieved from the oversold terrain giving room to the downside levels.

To read my previous article on Nifty, click on the below mentioned link

https://www.marketanalysiswithmeghmody.com/2023/02/nifty-elliott-wave-analysis.html

From 2 hourly chart, the index seems to be forming a rising wedge pattern (marked in red lines). Rising wedge has the potential to give a downside breakout but it seems that there is still a minor upmove left for the index. RSI is going up without a positive divergence.

As per Wave theory, Nifty is moving down in an impulse fashion from all time high. After marking a low of 17405 on the budget day, prices thereby made another new low and after that it started moving higher. At present the index is moving in wave ii of wave iii (extended) in which it completed wave a and wave b and wave c is currently ongoing. In wave c it is in the process to make ending diagonal where a fresh high i.e beyond 17916 is expected, thereafter a steep move on the downside is likely.

The summation is Nifty can make an attempt above 17916 levels and then can open the possibility of 16600 levels which I will continue to hold on for the short term. My medium term levels is also intact which is 15500-15000 levels. The resistance is placed at 18100 levels.

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