The May month was a tough trading month as the Nifty 50 index slipped from the high of 18,114 in April to the low of 15,735 in May. The sentiment on D-street turned bearish.
There was extreme fear but fear is an excellent opportunity for investors.
I put my neck out and did a video on how you can profit from this opportunity. You can watch it here in case you haven't already: Fear is an Opportunity on D-street.
The Nifty 50 index made multiple swings lows between 15,735-15,900 and finally reversed from a bullish harmonic pattern.
On the 2-hour chart, the index traded in the gap zone of 16,450-16,650 for last few trading sessions.
Additionally, it resisted at the 200 EMA on the 2-hours chart which is placed at 16,685.
As indicated by SGX Nifty, Nifty broke above the resistance zone of 16,700 and headed towards 17,000+ levels today.
Traders should grab this bullish opportunity. The bear attack can be expected on the break below 16,189.
At present, the Nifty 50 index is trading at around 16,760. Reliance and Infosys are the top gainers while Shree Cement and Grasim are the top losers.
If you're interested in being part of my charting journey as I share how to create wealth from the profitable trade setup, join my telegram channel - Fast Profits Daily. You'll get access to the best trading ideas in the stock market.
To know more about how the Nifty and Bank Nifty index are performing, please see the NSE Nifty Live Chart and NSE Bank Nifty long term chart.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.
As the green energy movement grows, Indian companies are on a mission to adopt green hydrogen, the cleanest form of energy in the world.
Mutual funds are buying shares at a time when FIIs are consistently selling. Here are 5 stocks where MF holdings has increased for the past 4 quarters.
These companies are leading the Government's US$1 tn 'Digital India' initiative.
This week we continue our conversation with Ajit Dayal, Founder, Quantum Mutual Fund, Personalfn and Equitymaster.
A billionaire investor explains why you should not invest in the present.
More Views on NewsAll that you need to know about assessing stock valuations using the P/E ratio.
This aspect of investing has a very high weightage on your overall returns, but often gets ignored when winning stories are written.
The good side of a market correction? Investors get consistent compounding stocks at a discount.
The auto index is outperforming the Nifty by a mile. Have auto stocks finally bottomed out?
Mutual funds are buying shares at a time when FIIs are consistently selling. Here are 5 stocks where MF holdings has increased for the past 4 quarters.
More
Equitymaster requests your view! Post a comment on "Nifty Bulls Rise to the Challenge". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!