Nifty 50: Outlook for next week and feb-25
After analyzing the index’s movement from August to December 2024, Nifty 50 has exhibited two key patterns:
1. Head & Shoulders:
• Rally from 24,887 to ATH 26,277 (Sep 9–26).
• Breakdown after completing the right shoulder on Oct 21, leading to a 1,500-point fall to 23,291 on Nov 22.
2. Inverse Head & Shoulders:
• Formation began on Oct 23, with the head completed on Nov 21 and a neckline formed by Nov 26.
• On Dec 4, the right shoulder completed, followed by a breakout above 24,463. The index consolidated for a week between Dec 4–13, strengthening the breakout signal.
Outlook
With strong confirmation of a bullish reversal above last week close, supported by FIIs inflows and favorable macroeconomic data (CPI/IIP), It is highly likely that Nifty 50 is likely to hit 25,647 by December 23, 2024. If the breakout doesn’t happen then we can see a consolidation and retest on last week levels failing which will lead to a breakdown which can push Nifty to 23,000 levels by Februrary 2025
Disclaimer: I am not SEBI-registered. This analysis is for educational and study purposes only. Any trade taken based on this view is solely at your own risk and is not a recommendation.