Nifty Prediction for tomorrow 26th May 2021

Nifty Prediction for tomorrow 26th May 2021 As predicted Nifty touched the upper trend line and is lacking momentum for a breakout as of now. We are adopting a wait and watch strategy for now.

Please refer Nifty chart shown below. It appears and I say appears for now because I am not 100% sure on this setup. However, at the present juncture, this appears to be a wedge pattern in the making. If this is confirmed as a wedge and on the break of the lower trend line we will have gates open towards 13800-14000. Now, this fall can happen very quickly so this is the reason I am saying let us wait and watch what happens here. We made good money from trading on the long side. It is not time not to get carried away and wait for a clear signal. I do not want to preempt the markets on this so let markets show what it wants to do.

There has been a lot of talk about a stimulus package. I do not think it will make much difference even if it comes through. I am saying this because the move is a corrective pullback and that will not change. We could see an event top also with news of stimulus coming out. 

Nifty Prediction for tomorrow
Nifty Prediction for tomorrow

Bank Nifty prediction for tomorrow

Bank Nifty also is looking in an advanced stage of the pullback. Though we can see pullback taking a few more days to be done. Eventually, post this pullback ends we see a target of 30000 on the bank nifty. Most of the banks should see a break below lows made on  12t April 2021. When and what to short sell and at what level is a different ball game assuming the wedge pattern plays out in Nifty.

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. 

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Regards,

Glen Drago

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