NIFTY 50 : Intraday view for 27 May 2025 : Will Nifty see bigger fall of 200-300 points more? RSI Divergence came in to play. Know more.
Will Nifty see bigger fall of 200-300 points more? RSI Divergence came in to play. Know more.
Presented above is the 1-hour chart of Nifty. Observe the initial hourly candle. This exceeds 200 points in length. The decline today is more technical, as evidenced by yesterday's RSI divergence. I have to acknowledge that BANKNIFTY has clearly signaled a potential decline with the DOJI formation I mentioned on my Twitter account.
Bear in mind that my definitions of bullish and bearish markets differ from yours.
"A bullish market disregards negative news, while a bearish market overlooks positive news."
In psychologischer Hinsicht,
The fall today is unlike those we have observed recently. This autumn came with little bad news. This could indicate that the bulls' appetite has been satisfied. Then recovery may be difficult. Another aspect to consider is that the market might be sensing that all the positive news has already arrived, leaving no further good news in the market.
There is a high likelihood of resistance occurring at the 25000 to 25100 levels from a technical perspective. Do not opt for a purchase unless Nifty is comfortably above the 25000 levels, or even the 25200 levels for additional security.
Is it able to reach 25500 to 25400? This possibility is currently the most discussed on charts. Crucially, avoid catching a falling knife. Wait for a bottom formation structure to emerge in the candlestick pattern. Yes, according to the levels, 24700 to 24750 is a support zone, but it's uncertain if it will break through that as well. It is better to wait for the pattern to develop; otherwise, it is better to sit aside.
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