Nifty's uptrend continues, with significant gains expected on Monday. Positive global market influences are anticipated. The 24000 level remains b; avoid short selling.
Stock Market: The Nifty is currently in an uptrend, and market volatility has resulted in considerable fluctuations for investors. However, it's now evident that selling at the Nifty's current level could be a risky move. If you're considering the Nifty, it's best to understand its current situation before deciding how to approach it.
Indications of Nifty's Uptrend
The Nifty closed at 24346 on Friday, with a modest gain of 12 points. Despite this, the Nifty has not fallen below the 24000 level, which represents the 200 Simple Moving Average (SMA). As long as the Nifty remains above this level, it will be considered in an uptrend. Meanwhile, both FIIs and DIIs are continuously buying, further strengthening the Nifty.
Nifty's Strength at the 24000 Level
The 24000 level currently serves as a crucial support level for the Nifty. If the Nifty falls below 24000, it will be considered weak. However, there are currently no such indications. The Nifty consistently remains above 24300 and could rise further while staying within a b buying zone.
Avoid Short Selling
Short selling the Nifty currently poses a significant risk. Continuous FII buying, improved corporate earnings, and positive global market news could sustain the Nifty's uptrend. Following the panic selling on April 25th, the Nifty has not fallen below 24000, and a higher high and higher low pattern has emerged on the daily chart.
Potential for a Significant Gap-Up Opening in Nifty on Monday
On Monday, the Nifty could see a significant gap-up opening due to positive influences from global markets. If this bullish trend continues, the Nifty could reach the 24600 level. Positive job data and trade negotiation signals from global markets could provide further support to Indian markets.
Inspiration from Global Markets
US markets saw a surge on Friday, with the Dow Jones gaining 564 points, and the S&P 500 rising by 1.47%. This positive momentum is likely to impact Indian markets, potentially leading to further gains in the Nifty on Monday.
If the Nifty adopts a sideways trend after 24600, it could remain stable for a while before potentially reaching 24800. Maintaining the 24000 level is crucial for the Nifty to sustain its uptrend.
