Nifty Prediction for tomorrow 10th May 2021 Nifty trend remains sideways between upper and lower trend channel. Breakout with volumes will decide the next move and trending direction. Channel support around 14000 and channel resistance around 14950. Spot Nifty levels mentioned.
The broad Stock market / Nifty has just been trading in a broad trading range over the past few weeks. Now volumes also have started declining. I know this sounds illogical and even weird but despite the pandemic ranging on Nifty and broad stock markets have not yet confirmed any breakdown. As charts suggest now we still are in a corrective down move. As per Neo wave and Elliot wave counts and that does suggest that post this move down or on upside breakout of the trend channel, we could move towards 15250 or even a new high.
Nifty Prediction longer term
And while the chart above shows just a consolidation of fundamental factors show a sharp fall in consumption. Lack of pent-up demand whenever the economy reopens, higher medical spends by most people leading to fall in net disposable incomes, lower net income levels across segments. So this time around pandemic has hit the higher consuming classes and that could have a detrimental effect on fundamentals going forward over the next few quarters.
So both the charts and real-time data coming from the ground are showing an absolutely different picture. Now that leads me to think that it could happen that in the second half or whenever we start seeing the end of covid we could start seeing that good news of economic recovery becomes bad news for prices. And that is because as of now all positives have been priced in however none of the risk or slow down related factors are in the price.
Hence in a nutshell price have moved way too ahead in terms of optimism in the short term so although from a technical perspective we could see a new high or 15250 post-breakout now that comes from 14000 or here that is a different picture altogether but longer-term we could see limited upside just because all positives are in the price.
Bank Nifty Prediction for tomorrow
Bank Nifty although has broken out from the downward channel has failed to show any thrust which is needed for short-term bullishness. As of now this index too is just drifting and we see a lot of overlapping going on here so this too would be better avoided for now.
As usual, if you are only trading on the basis of this post please use your own risk management and then only trade. Please do not over-trade and always keep your risk in check.