Recently we have seen some weakness in 
NIFTY where it has failed to break out of the upward sloping Fib Retracement level. On June 16 we reflected upon the situation with $NIFTY. I was bullish on NIFTY due to the $DXY.
DXY weakness and EM markets: NIFTY more upside? for NSE:NIFTY by RabishankarBiswal — TradingView
My prediction was that theNIFTY can reach 26000 and DXY @ 96 by end of July. But the unravelling of the DXY short trade and recent strength in DXY has put pressure on our outlook.
Now we can go to the micro level and check what happening in the charts for bothDXY and $NIFTY. In the daily chart below we overlayed DXY on top of the NIFTY candle stick chart. If we draw the Fib retracement level form the top to bottom of the NIFTY on the yearly chart we can see clear levels at play. It is also astounding to see how the Top and the bottom range of the Fib levels match to those from the $DXY. After making a new low of 97, DXY saw some short covering which took it back to 99. At the same time NIFTY put out a local top @ 25600 and then pulled back below to 0.786 Fib level currently below the psychological level of 25000. Hence our July end target of 26000 for NIFTY and 96 for DXY looks distant but not unrealistic. With 4 more trading days left in the month we might rally another 4.5% in NIFTY and drop 2% in DXY giving us a perfect leverage trade and meeting our July targets.
Verdict:NIFTY @ 26000 and DXY @ 96 as target remains intact. If not in July, we will achieve it in August.
NIFTY where it has failed to break out of the upward sloping Fib Retracement level. On June 16 we reflected upon the situation with $NIFTY. I was bullish on NIFTY due to the $DXY. DXY weakness and EM markets: NIFTY more upside? for NSE:NIFTY by RabishankarBiswal — TradingViewMy prediction was that the
NIFTY can reach 26000 and DXY @ 96 by end of July. But the unravelling of the DXY short trade and recent strength in DXY has put pressure on our outlook. Now we can go to the micro level and check what happening in the charts for both
DXY and $NIFTY. In the daily chart below we overlayed DXY on top of the NIFTY candle stick chart. If we draw the Fib retracement level form the top to bottom of the NIFTY on the yearly chart we can see clear levels at play. It is also astounding to see how the Top and the bottom range of the Fib levels match to those from the $DXY. After making a new low of 97, DXY saw some short covering which took it back to 99. At the same time NIFTY put out a local top @ 25600 and then pulled back below to 0.786 Fib level currently below the psychological level of 25000. Hence our July end target of 26000 for NIFTY and 96 for DXY looks distant but not unrealistic. With 4 more trading days left in the month we might rally another 4.5% in NIFTY and drop 2% in DXY giving us a perfect leverage trade and meeting our July targets. Verdict:
NIFTY @ 26000 and DXY @ 96 as target remains intact. If not in July, we will achieve it in August. 
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.