Nifty Trends: What Should You Watch Out for?

Trend in the Nifty index revolves around the trajectory of its price movement. Nifty's prices go up or down depending on whether the market is optimistic (bullish) or pessimistic (bearish). However, these price changes are not usually straightforward, as Nifty can swing a lot in the short term.

NIFTY INDEX trading can be made more accessible with the help of trading patterns. Trading patterns are charted in the form of fluctuation in the market, which changes the share price over time. This trading chart pattern varies day by day.

Unlock the power of our Nifty 50 reports for a clear and in-depth analysis of daily Nifty trends. Explore further by clicking on this Link >> Today's Nifty 50 forecast 

It Is Categorized Into Three Types:

Trend days – this trading pattern indicates the upward and downward movement of the market. The impact of news and events daily can change the market, either bearish or bullish. The up or downtrend usually does not exist for more than two days.

Reversal days – when the stock reaches a high price on a trading day, and then the price reduces, it is known as a reversal trend. These price hikes are called shooting stars or hammers on the nifty daily chart.

Range days – it is otherwise termed as consolidation. This trend follows a trend day pattern and does not change significantly due to market sentiment.

UNDERSTANDING NIFTY TRENDS

The trend is NIFTY options, and NIFTY futures can be figured with the help of an online calculator when the data is entered. The market scenarios are divided into three, which are common.

• Bull market

• Bear market

• Range market

Currently, we are witnessing trending days in the Indian stock market, signaling a bull market that is likely to continue in the upcoming months. Even if the market falls from its current level, it has crucial supports at 19,300, 18,800, 18,600, and 18,000, among others. As a result, it is highly unlikely for the market to reach back to the levels of 15,000 unless a significant market crash occurs.

In the below chart, we have demonstrated the three dimensions of the market.

The first is a range-bound market – where the market will not break either high or low, but the trade happens on particular support and resistance.

The second is a bull trend, led by the range market trend. The bull trend always makes the market reach a higher and higher price.

The third is the bearish market - The bear trend starts where the bull trend ends. The bear trend always makes the market lower and lower prices. This cycle continues thereon.The bull and bear market is the primary trend. The ranging market is highly volatile, which is considered unsafe to trade. IntradayTrading is based on market trends, and technical analysis helps to study them. Enrich market hunt software to provide these charts.

Analyzing trends is of utmost importance to gain a clear direction of trade. In the stock market, there is a common saying, "never trade against the trend, trend is your friend." As a benchmark index, Nifty's trend can offer valuable insights into trading in the overall market. You can keep an eye on Enrich Money's Nifty 50 report to obtain a clear and in-depth technical outlook on a daily basis. 

INDIAN STOCK MARKET OUTLOOK 2023

The Stock Market is the mirror of the economy of the country.  In recent years the Indian Stock Market has been a center of attraction for Investors across the globe. However, we think 2023 sitting at an all time high in a strong bullish rally seems to be continued with positive and progressive growth. Although in recent past years Market been through Roller coaster ride in COVID19 and investors met both highs and lows, even though the market participants are increasing triple a count as full throttle.

Influential Factors Shaping the Stock Market in 2023

The Strong Political & Social environment of the both Country and Global level will be a deciding factor of Stock Market growth. Inflation, Interest Rates, Economy growth, and Global events are major factors of influence in the Stock Market.

Forecasting the Market Trends of 2023

Experts and Analysts say the Bullish rally is high on side due to positive quarter results in domestic and slight improvement in economic growth and FII continuous fueling in our market.  Amid the challenges we are going to face the second consecutive U.S. fed rate hike and the war in Russia & Ukraine. So it's on time to sit and watch consolidation further 5% to 8%, then slowly feed the strength of the portfolio.

2023 Nifty Technical Analysis: A Current Perspective

 

Currently, the nifty price has reached a high point in the market and is poised to potentially reach even higher levels if the rally continues and surpasses 20,000. In case the market does break the 20,000 mark, it is expected to act as a support level. However, it's crucial to note that 20,000 holds significant sentimental value and may create pressure as a breaking point.

For potential buyers, it may be wise to consider the market when the Nifty index reaches around the 19,300 level. If it breaks below this level, it could potentially decline further towards the 18,800 range, which might act as a pullback zone. If the market continues to weaken, the next strong support levels to watch are 18,600 and 18,000.

However, if these support levels fail to hold, there is a possibility of a more significant decline, with the Nifty potentially dropping to 16,600 and even as low as 15,000 in a longer term perspective. It's important to note that the 15,000 level has served as a strong support level since 2021 and holds considerable sentimental significance as a potential breakout point.

In summary, the current nifty price is at a high point and has the potential to go even higher if the rally continues and breaks 20,000.If the market breaks the 20000 mark, there is a possibility that it could reach the level of 21000 to 23000.However, it's important to be cautious around this level due to the sentimental pressure it holds. For risk-takers, they may choose to wait for further upward moves ,anticipating even greater gains and carefully monitor their profits before deciding to book them.On the other hand, conservative and risk-averse stock market participants can prefer to exit the booming market early. Instead of chasing the rising market, they can opt  for a correction which can be seen as a potential buying opportunity.

Top Industries to Keep an Eye on in 2024

In future these sectors still surprise us to give skeptical growth i.e Manufacturing, Steel, Infra, E-Commerce, Renewable Energy & Chemical. Here are some strong fundamental picks that will strengthen our basket.

Key events will be on Eye:

Firstly, Inflation Data & Interest Rates by Monetary Policy.

To ensure FII consistent inflow in the Market.

The changes of Monsoon in the country.

To watch global events & Fed Rate & Ukraine war.

To understand the movements of Oil Prices.

However, the outlook of the market is Strong Positive as expected in the past, so this is the time to understand the Power & potential of the Indian Stock Market. Also, day by day the size of investors is increasing exponentially, which implies the strong perspective about Stock Market investments among the people. So once again underline the economic growth, FII inflows, Increasing IPOs,  Infrastructure development are the key of the Bullish Trend. Hence, we strongly believe the bullish rally continues further with an optimistic level.

Conducting trend analysis may seem like a complex and time-consuming task for both traders and investors. However, there's no need to worry because everything you need is available in a clear-cut way on our Nifty 50 page. The page provides :

• IN-DEPTH MARKET OUTLOOK

• RESEARCH TIPS

• DAILY INDEX CHARTS

• SUPPORT & RESISTANCE LEVELS

• FII & DII DATA

• DAILY INSIGHTS INTO BOTH DOMESTIC & GLOBAL MARKETS

These features can be incredibly useful for stock market participants who wish to regularly engage in stock market activity.