Brijesh Bhatia, Definage
India Vix, a 30 -day potential volatility measuring index, appeared to be fast cooling after the market opened on May 12. Whereas the Nifty 50 index has seen more than 2.5 percent rose in early trade. After a rapid increase in tension between India and Pakistan, the weekends were seen returning to western borders after the weekends agreed to the ceasefire of the two countries and to talk to the DGMO level for it.
Trader and investors can appear to be cautious in the near period even if long -term possibilities are good. After the gap up start, what does the Nifty 50 chart tell us about the market condition and direction? Let’s look at it –
Heikin Ashi Charts The price of the Nifty’s price action shows a clear status of the Nifty, reducing the volatibility. Unlike traditional candlestick charts, these charts use modified formulas that extract average of price data to make better candles. The 100-Veek Experimental Moving Average (100WEMA) channel is made using two figures-100-Weema High and Low. This makes it easier to identify possible support and resistance levels.
In the last 18 years, the Nifty 50 index has fallen by more than 10 percent only twice. Once in 2008, during the global financial crisis, it has fallen by more than 10 per cent. Thereafter, during the Covid-19 in 2020, such a big fall was seen. In every case, the 100-XEMA channel has trusted as a supported support. This means that this is a zone where prices return again.
When focusing on the current chart, it is found that the Nifty declined sharply in April 2025. In the current decline, Nifty gained support on the 100-XEMA channel and returned upwards. This has strengthened the possibility of strong support in this zone.
Despite the rapid increase in tension between India and Pakistan and the uncertainty caused by the same rapid ceasefire, technical signs suggest that there is a possibility of rapid recovery in the market. There is strong support for Nifty at the breakout level of 23,800. Along with this, the situation between 22,599 and 21,867 is also giving additional support to 100-EMA channel Nifty.
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Interestingly, in the last four weeks, Bulish Haikin Ashi has become a candle. These candles are indicating the return after recent decline. They indicate that there may be a big boom ahead.
Looking at the data, it seems that the Nifty 50 index is in good position to maintain its important support levels and further market can be seen in the market.
Note: The purpose of this article is only to share interesting charts, data points and your opinion. This is not an investment recommendation. This article is only for educational purposes.
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Brijesh Bhatia is a senior research analyst in Definedge. He has more than 18 years of experience of capital and financial market. He has worked with UTI, Asit C Mehta and Edelweiss Securities