- This morning we witnessed the Nifty falling to 21574.00 levels.
- The German 40 Index fell to the 16880.0 level on Friday, testing the support area last week.
Neat chart analysis
This morning we witnessed the Nifty falling to 21574.00 levels. As expected, the index fell to support the EMA200 moving average. We expect consolidation to take place here in the coming period and a new bullish consolidation to begin.
First, we will have to rise above the 21,700.00 level and hold there. After forming a bottom at this level, the index can begin a further recovery. Possible higher targets are the 21800.00 and 21900.00 levels.
If we fall below the 200 SMA, the Nifty will be under a lot of pressure to break to a new lower support. A break below would take us back to January support levels, which could further weigh on the index's value. Possible downside targets are 21500.00 and 21400.00 levels.
Chart analysis of the German 40 index
The German 40 Index fell to the 16880.0 level on Friday, testing the support area last week. After obtaining support at this level, the index began an upward consolidation that continued at the beginning of this week.
During the Asian session, we moved around 16960.0 levels. Then, in the EU session, further recovery began, and the index rose to 17015.0 levels.
This forms the daily upper values for the German 40 index, and the possible higher targets are the 17020.0 and 17040.0 levels. For the bearish option, we need to pull back to the Asian support at 16960.0.
New pressure in that area could easily break through and form a new daily low. We will look for support at the 16940.0 area and the EMA200.
