- The Nifty 50 has pulled back just a touch during the trading session on Tuesday as the market continues to pay close attention to the 25,250 rupee level.
- This to me is a bit of a brick wall. And if we can get above there, especially on a daily close, then I think stocks in India continue to rise.
- We are seeing that worldwide anyway, so it makes a certain amount of sense that eventually we will see this happen.
Above the 25,250 rupee level, there is a gap near the 25,780 level that could be targeted. Then the recent highs back in October at the 26,250 rupee level, regardless, this is a bullish market at the moment.
If we do pull back, there is a clear line of support at the 24,500 rupee level that people will be watching, especially now that we have the 50 day EMA racing toward that as well. It typically will act as dynamic support or resistance or at least attract a certain amount of attention anyways. In a bullish market, it makes a lot of sense that there would be people looking for a pullback towards this area in order to get back into the trade that they may have missed.
Volume Has Been Important
Volume is good. And we’ve recently seen volume really pick up down at the 24,500 level. So, I think that it might be your floor at the moment. Obviously, there’s a lot of headlines out there with trade and drama that could cause the market to turn around. But as things stand right now, it just looks steady as she goes as we are trying to get to the all-time highs in this important emerging market index.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.