Rohit Srivastava of Chartist Talks IndiaCharts thinks the rise is gone and it's time for the Nifty to rectify itself

Rohit Srivastava of Chartist Talks IndiaCharts thinks the rise is gone and it's time for the Nifty to rectify itself

Adani Group shares are intriguing, according to Rohit Srivastava, since a year earlier they dropped as a result of unfavorable news.

IndiaCharts and Strike Money Analytics were founded by Rohit Srivastava.

According to Rohit Srivastava, creator of Strike Money Analytics and IndiaCharts, the rise has ended since the previous pattern of higher highs and higher lows on the Nifty 50 has broken. He made this statement in an interview with Moneycontrol.

According to him, one should take into account the theory that a correction is in progress and that the Nifty 50 has completed its rebound from its October low.

With over three decades of expertise in the equities markets, Srivastava thinks the recent decrease in the Bank Nifty index seems impulsive, suggesting further losses might be seen in the next weeks.

It is considered bullish in the near term, indicating that the index may rise before returning to the 200-day EMA (44,555).

Do the charts indicate that there will probably be a significant short-term correction?

The fact that the Nifty closed below PR's obvious swing low of 21,286 indicates a reversal in the Dow trend. The uptrend has ceased since the prior pattern of higher, lower, and higher has been broken.

We should take into account the possibility that a correction is approaching and that the recovery from the October lows is done.

Is "selling on rally" the best course of action right now?

Every rebound seems to be a retracement of the last downturn, therefore a string of dead cat bounces could be expected. Nifty is now retracing its decline from 22,124 to 21,286. The 50% retracement was at 21,708, while the 61.8 percent retracement was at 21,824. The Nifty dropped with a gap-down below 21,854.

It is thus a sell market on the rise, and we should create a lower top close to the gap zone and then continue down.

In what weeks do you think Bank Nifty will breach the 200-day EMA?

The Bank Nifty's 200-day Exponential Moving Average, or EMA, is at 44,555. Given the impulsive nature of the recent Bank Nifty collapse, further losses might happen in the next weeks.

Nonetheless, the short-term upswing suggests that Bank Nifty may rise further before reverting to the 200-day EMA. It is probable that the 200 EMA will be breached in due course.

On the other hand, the PSU Bank index kept making greater highs and higher lows. Do you think the index has additional upside?

An significant resistance level that was struck by the Nifty PSE index on Saturday is the trendline of the high of 8,478. All signs point to a sector top that is emerging, complete with many negative divergences and high volume climaxes.

A trend reversal requires patience from investors. The time to purchase PSU shares is not now. Investing is a patient game in which you don't chase returns; instead, you buy cheap and sell high.

Do you think the Nifty FMCG index will go beyond the 55,000 mark?

Currently, there is no indication of a trend reversal in the Nifty FMCG index. It is thus hard to predict whether it may break. Money may often move from growth to defensive equities, which will keep the FMCG industry moving upward for a while. FMCG equities have a poor value perspective and are seldom suitable for investing.

Are the indicators pointing to 16,000 as the Nasdaq Composite's target in the next weeks?

Although the Nasdaq Composite reached a new 52-week high, investors are optimistic. I'm not sure whether this rally has legs, therefore I'm not sure if it can reach 16,000 just yet.

Before determining if the current spike in US indices is sustainable, we will examine the trend throughout the course of the next week.

Which stocks, and why, should investors be watching over the remainder of January?

The fascinating thing about Adani Group's shares is that a year ago, bad news caused them to drop. Adani Enterprises is now nearing the 61.8 percent retracement level of the previous year's drop, thus the outcome here will also provide insight into the markets.

Reliance Industries is once again at an all-time high, and the way it behaved after the results should tell us something about the market's perception of the company's long-term growth potential.

It is unclear whether HDFC Bank will break out of its three-year trading range or continue to maintain it for a fourth time, although it is now nearing the bottom of the range.