Defty Analysis. (Nifty 50 denominated in US Dollars). CMP 7,085. Posted on 2 April 2021. Good Friday.
Not much change from previous post of 3 Feb 2021 when price was 6775. Since then price advanced to 7,300 and has corrected slightly since.
This 2 month chart is extraordinarily bullish from an intermediate and long term perspective.
Price broke out from a decade old ascending triangle pattern. The ascending triangle is a high probability pattern, and we especially like this pattern for trading purposes.
This Defty ascending triangle has appeared on the 2 month chart, so difficult to use for position trading, but it does provide comfort that even if price does correct, it would Not signifty change in the larger trend.
Please be aware that price can come down to test the 5600 ~ 6000 level (the horizontal line in the ascending triangle), which is still a substantial correction from current levels. This would not change the larger expectation for a rally to the 14,000 ~ 15,000 level.
The 3 day chart