Stock Phoenix’s Nifty analysis for the Month of June 2019

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Nifty @Fibonacci

We will study the Nifty movement with the help of Fibonacci numbers. It’s one of the moves important and powerful indicators that will help us to arrive at the Targets for the reversal trend. It’s drawn by arriving at the top and bottom of the trend and it’s drawn to arrive at the next set of support and resistance. The higher the Time Frame, the better the results. Here we have taken the Daily charts to draw the Fibonacci Numbers. The drawing remains the same until we get a new high or new low by Nifty. Numbers 38.2% and 61.8% are considered as very crucial in the Fibonacci series.

Nifty Analysis

Nifty has made top at 12103. The index has to cross 12103 for the next level of Target 12483 which is the Fibonacci extension at 138.20%. Let’s talk about the current level. Currently Nifty is at the levels between 100% and 61.80%. Nifty has to cross the levels of 100% for the next level of the target on the upper side and it should break the level of 61.80 for the lower level for the downside targets.

As the level between 61.80% and 100% is very high, we have to look for the support and resistance between these two zones. Let’s take a look at the different levels.

Nifty has support at 11856. This is the previous lifetime high mark and this will as support for the index on the daily time frame. As long as the index closure is above 11856, Nifty will head towards the first target of 12000 and the second target of 12100. Once the lifetime high is broken at 12103, the Nifty target is open till 12483. And the level 12100 will act as strong support for Nifty.

At the same time if the Nifty breaks the zone of 11723, then the target for downside is open till the levels of 11605 and 11488. Nifty will get stronger support at the levels of 38.20%.

What are the possibilities of Nifty crossing Make or Break in June?

Even though the Fibonacci numbers are very accurate, Fibonacci analysis does not tell anything about the timeline to achieving the targets. For the time frame, we have to take help of the Nifty Option chain. The near term target can be arrived with the help of Option chain.

If we study the monthly series of Nifty Option chain, we could see the major resistance at the level at 12500 strike price with the overall OI at 2.76 Lakhs as of 7th of June and major support at the level of 11500 strike price with the overall OI at 2.78 Lakhs. So the range between two zones is high and the index is almost in the middle point.

Overall PCR ratio suggests bullishness in the Nifty and target looks strong above 12100. Along with that Nifty option also shows the resistance at the levels of 12500 and our target as per Fibonacci numbers is 12483. As long as the index is above the levels of 11856, we can see the targets of 12000 and 12100 easily. Any bullish closure candle above 12100 will give a strong zone for the next set of targets. At the same time if Nifty breaks the zones of 11856 on a closure note, then we see Index will hover around the zones of 11723 levels

Immediate Target and resistance
  • Upside Targets: 12000 and 12103.
  • Downside Targets: 11800 and 11723
Conclusion form Stock Phoenix

We see Index bullish on near term and expecting index to hit the 12K Mark ahead. Let’s wait and how and what market shows ahead for us.

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