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India's Nifty 50 Index Under Bearish Death Cross

ByCandy Matheson
Published 09/17/2019, 04:17 AM
Updated 07/09/2023, 06:31 AM

The news in this article from Bloomberg does not bode well for India's market.

Bloomberg Tweet

The profit-taking mentioned in the article is depicted on the following monthly chart of the Nifty 50 Index (NSEI).

Price is sitting just below near-term support of 11000 and has fallen outside of an uptrending channel from the February 2016 lows.

The Momentum indicator (MOM) began diverging and making lower swing highs after October 2017, while the index was making higher swing highs...hinting at impending weakness. At the moment, MOM is sitting just above the zero level. A drop and hold below that would see price weaken further, perhaps down to its next major support level of 10000.

Nifty 50 Monthly Chart

On a shorter timeframe,

  • a bearish moving average Death Cross has just formed on the daily chart of NSEI,

  • price is trading below both the 50 and 200 MAs, and

  • Balance of Power is in the hands of the sellers and accelerating,

    • all of which are hinting of further near-term weakness, unless and until those conditions change.

    Nifty 50 Daily Chart

    Latest comments

    Dear madam next month nifty 50 how much range
    nifty futures are trading at discount of 100 points approx what does it indicates.is it worthy to short the market 29 may status
    Is Nifty in the process of formation of cup and handle price pattern on daily chart.share your views on the same
    can you please suggest your view seeing today's (23 sep 2019) view where nifty is now at 11600 .
    I agree Indian bourse is in grip of bears.The bottom is yet to be tested ,on technical and fundamental studies
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