Nifty 50: Failed Auction Risk vs. Pre-Budget Reversal ???
**Headline Summary**
This is a make-or-break week for Nifty. We are caught between a bearish "Failed Auction" structure and the high probability of a pre-budget support bid. The price action over the next 48 hours will likely dictate the trend until February 1st.
**1. The Bearish Risk: Pink Box vs. Black Box**
* **The Failed Auction:** The large **Pink Box** represents a major distribution zone. We are currently trading inside the **Black Box** below it.
* **The Threat:** If Nifty closes this week *inside* this Black Box, it confirms a "Failed Auction" for the entire upper range.
* **The Target:** Structurally, a confirmed failure opens the door to the bottom of the balance area at **24,400** (or lower).
**2. The Bullish Case: Pre-Budget Context**
Despite the weak technicals (Double Top/Flat Top), the fundamental context argues against a crash.
* **Time to Budget:** We are just 13 sessions away from the Union Budget (Feb 1st).
* **Sentiment:** Geopolitical setbacks and fading trade deal hopes have pressured the government. Historically, this often leads to reform announcements or market support to prevent a pre-budget crash.
* **Thesis:** It is unlikely the market will be allowed to drift straight to 24,400 just days before the event.
**3. Two Paths to Recovery (The "Trap")**
For the bulls to save the auction, they must reclaim **25,800** on or before Friday. I am watching for one of two scenarios:
* **Scenario A (The Slow Grind):** A "Channel Down" move to the support zone (**~25,500**) followed by a breakout later in the week. This slow grind would indicate bear weakness.
* **Scenario B (The Sharp V-Shape):** A sudden, sharp reversal late Monday or Tuesday. If the market quickly rejects lower prices and snaps back up, it confirms a "Bear Trap" is in play.
**4. Execution: The "Anchor" Strategy**
There are too many "ifs and buts" to trade blindly. Use this specific setup to filter the noise:
* **The Level:** **25,700** (Anchor your VWAP to the **Monday 11:00 AM candle**).
* **The Signal:** This is your line in the sand.
* **Bullish:** Only consider long positions if the market trades *consistently above* this **25,700 Anchored VWAP**.
* **Bearish:** As long as we are below it, the risk of sliding to the bottom of the Black Box remains active.
* **The Goal:** A weekly close > **25,800** is mandatory to confirm the pre-budget rally has started.
**Conclusion**
The bears have the chart structure, but the bulls have the timeline. Watch the **25,700** anchor level closely—if we reclaim it, the "Failed Auction" is negated, and the squeeze to 25,800+ begins.
**Trade Cautiously & All the Best!**
Plz do comment if u need any further clarity..
**Headline Summary**
This is a make-or-break week for Nifty. We are caught between a bearish "Failed Auction" structure and the high probability of a pre-budget support bid. The price action over the next 48 hours will likely dictate the trend until February 1st.
**1. The Bearish Risk: Pink Box vs. Black Box**
* **The Failed Auction:** The large **Pink Box** represents a major distribution zone. We are currently trading inside the **Black Box** below it.
* **The Threat:** If Nifty closes this week *inside* this Black Box, it confirms a "Failed Auction" for the entire upper range.
* **The Target:** Structurally, a confirmed failure opens the door to the bottom of the balance area at **24,400** (or lower).
**2. The Bullish Case: Pre-Budget Context**
Despite the weak technicals (Double Top/Flat Top), the fundamental context argues against a crash.
* **Time to Budget:** We are just 13 sessions away from the Union Budget (Feb 1st).
* **Sentiment:** Geopolitical setbacks and fading trade deal hopes have pressured the government. Historically, this often leads to reform announcements or market support to prevent a pre-budget crash.
* **Thesis:** It is unlikely the market will be allowed to drift straight to 24,400 just days before the event.
**3. Two Paths to Recovery (The "Trap")**
For the bulls to save the auction, they must reclaim **25,800** on or before Friday. I am watching for one of two scenarios:
* **Scenario A (The Slow Grind):** A "Channel Down" move to the support zone (**~25,500**) followed by a breakout later in the week. This slow grind would indicate bear weakness.
* **Scenario B (The Sharp V-Shape):** A sudden, sharp reversal late Monday or Tuesday. If the market quickly rejects lower prices and snaps back up, it confirms a "Bear Trap" is in play.
**4. Execution: The "Anchor" Strategy**
There are too many "ifs and buts" to trade blindly. Use this specific setup to filter the noise:
* **The Level:** **25,700** (Anchor your VWAP to the **Monday 11:00 AM candle**).
* **The Signal:** This is your line in the sand.
* **Bullish:** Only consider long positions if the market trades *consistently above* this **25,700 Anchored VWAP**.
* **Bearish:** As long as we are below it, the risk of sliding to the bottom of the Black Box remains active.
* **The Goal:** A weekly close > **25,800** is mandatory to confirm the pre-budget rally has started.
**Conclusion**
The bears have the chart structure, but the bulls have the timeline. Watch the **25,700** anchor level closely—if we reclaim it, the "Failed Auction" is negated, and the squeeze to 25,800+ begins.
**Trade Cautiously & All the Best!**
Plz do comment if u need any further clarity..
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Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.