Nifty Technical Charts And More – Keep Your Eyes On Four US Cues

What To Watch And When To Act

In doing that, we have a little help from the Dollar Index pulling back a bit from the recent high. It needs to break 102 levels to signal even the first of the hints at reversal. The situation in the US 10-year yield is similar, where a continuation below 2.72% will send out the first of the signals. These are to be awaited ahead in the coming week.

Given that as a setting, how do we handle ourselves going forward? First is acceptance. Accept that the market is not going to fly away. Drop those expectations of new highs periodically forecast by enthusiastic dreamers.

Second, the swings are big. So there will still be room left to get in and out. Hence you must participate when you see an opportunity. However, make sure to get out too when you make some money. Do not sit around expecting big gains. Likewise, if a trade goes against you, do not sit around with the hope that it will revive. Your nerve will give out before it reverses and you will rack up large losses. If all these sound like too much to do, then just leave the market alone for now until it settles down to a more ‘normal’ behavior. When will that happen? No idea. No point in trying to guess either. When sentiments run high, data and patterns get obscured by emotions.

Then, of course, there are the mandatory ‘levels’ that everyone wants to see or hear. So here goes. 15,750 has been built as good support. Violation of that may see a fall to 15,610 or even to 15220. On the upper side, 16,500 seems a resistance, with a gap above and an option position concentration. Above that, the index may lead a charge towards 17,100. For now, the weight of evidence points to the lower targets being achieved than the upper. Not exactly a pretty picture. It’s up to the market to paint it differently.

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