Nifty50 Index: Analysis of Potential Next Levels

If you closely observe the daily chart for the Nifty50 Index, you’ll notice that Nifty is currently at a long-term support level. Considering the selling pressure and the recent closing candle at this support, Nifty appears set to complete its corrective move towards the 25,400-25,500 range. Following this, there is a possibility that Nifty may fall below 25,000, reaching the next support level around 24,400, which aligns with the lower boundary of a larger channel.

This movement aligns with a historical pattern where, at the end of each year, particularly during October-November, the market tends to correct significantly before rallying by 10-15% until February-March.

Another factor influencing this scenario is the expected year-end behavior of Foreign Institutional Investors (FIIs). Historically, FIIs book profits and take extended vacations around Christmas. For this reason, they tend to seek better price points to invest significant sums before the year-end, and a market correction provides the opportunity to buy at more favorable levels.

Your thoughts and feedback are welcome, as they will help me improve my analysis. Thank you, and let's stay prepared for what lies ahead!