The Nifty pulls back while the German 40 starts to recover

• At Friday’s market opening, the Nifty index formed a new all-time high at the 24854.80 level.
• During this morning’s Asian trading session, the German 40 index returned above the 18500.0 level. 

Nifty chart analysis

At Friday’s market opening, the Nifty index formed a new all-time high at the 24854.80 level. Not long after, a bearish consolidation was initiated, which continued this week. In today’s session, we saw an impulse at the 24074.20 level, forming a new weekly low. A little below that at 23970.00 is the EMA 200 moving average. The index managed to stabilize and reverse the situation, returning to the 24500.00 level.

Before closing today’s session, the index stopped at the 24476.00 level. We expect to see a continuation of the bullish option and a move above the weekly open price in the next session. Potential higher targets are 24600.00 and 24700.00 levels. For a bearish option, we need a new negative consolidation. After that, we can expect the Nifty to turn towards the previous low. We will definitely look at the EMA 200 moving average as a support level. Potential lower targets are 24100.00 and 24000.0 levels.

German 40 chart analysis

During this morning’s Asian trading session, the German 40 index returned above the 18500.0 level. Yesterday’s support of the EMA 200 moving average gave the index additional support to continue on the bullish side. Today, we see the formation of a new weekly high at the 18645.1 level. We are currently stopping at that level and pulling back slightly to the 18610.0 level.

If German 40 returns above 18625.0, it will have an opportunity to create a new weekly high. Potential higher targets are the 18650.0 and 18700.0 levels. For a bearish option, we need a pullback of the index below the 18550.0 level. This starts a bearish consolidation that would bring us back below 18500.0. There, we are approaching the EMA 200 moving average, expecting new support from it. Potential lower targets are the 18400.0 and 18350.0 levels.

The post The Nifty pulls back while the German 40 starts to recover appeared first on FinanceBrokerage.