Nifty Prediction for tomorrow 18-10-2021

Nifty Prediction for tomorrow Nifty trend should be sideways between 18500-18000 however I would look to suggest swp (systematic withdrawal plan) for now.

Nifty Trend

sideways

Support

18000

Resistance

18500

Bank Nifty Support

37765

Bank Nifty Resistance

39410

Nifty Prediction and commentary

Nifty has been moving higher however there are some serious divergences and that does not look good to me. Also, from a near-term perspective there is massive euphoria and along with the leading indicators are suggesting that we are nearing a short-term euphoric peak.


Divergence does not look good
Nifty Prediction

Nifty Prediction
RSI Above 82 sets off correction

As things stand I am not advocating short selling until we do not see a reversal confirmation however looking at the scenario I do not suggest chasing prices. The manner in which prices are moving reminds me of Dec 2007 so idea is to be very nimble-footed and trade. For investors, I would suggest taking some money off the table.


Headwinds building up for Indian stock markets

Other leading indicators like usdinr, bond yields are also at an inflection point. If we do see bond yields stabilize above 6.32 we see the end of the low-interest rate cycle. Primarily because of crude oil moving higher with crude oil at such levels historically Indian equities have not done great. Yes, selected stocks have outperformed however broadly market returns have been just ok.


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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