Nifty Prediction for tomorrow 31st May 2021

Nifty Prediction for tomorrow 31st May 2021 Nifty trend remains up however momentum divergence makes me very cautious as of now.

Nifty broke out of the rising wedge but lacks momentum to confirm the breakout. On the daily chart, Nifty formed yet another candle that suggests indecision by big players. Nifty we have been predicting a positive trend and bias for the past few days. Now, however or rather from last Monday, I have been very concerned looking at the momentum divergences on Nifty.

Despite Nifty moving higher momentum has been lagging. From a wave perspective, this remains a corrective up move. I do not see buying breakouts as a good trade even now. It is a better strategy to watch out for a reversal and buy at deep supports. Better still to look for a lower top formation completing and starting down move for 14000 or 14600 target which is still possible and likely. 

Having said that I am cautious does it mean I am going short now? Till I do not see a reversal confirmation I will not short sell. Despite being a corrective up move we can still move a bit higher. 

Nifty prediction for tomorrow
Nifty prediction for tomorrow

Bank Nifty prediction for tomorrow

Bank Nifty also is looking like will make a lower top in the next few days. The rice has been just drifting higher and whenever we see such a drift in prices without momentum be rest assured that it is corrective. Like in the case of Nifty this does not mean we short sell bank nifty immediately. We will need a reversal confirmation to short sell. 

Once we see a reversal confirmation we can see Bank Nifty heading towards lower targets. In the near term, we will look to adopt a wait and watch policy. I do not like to force trades where there are none. So be patient and let the markets tell us what to do.

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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