We all know that equity (nifty 50) investment is a very good option to invest your hard-earned money. But what will be the Nifty 50 level 2025 for it?

We have to do nifty investment In order to beat the inflation. But we always know that equity investment is associated with a high level of risk and it may also erode your capital if you end up investing at the wrong time.

And it may take months or even years to recover capital.

When you are talking about equity investment or equity analysis, we can resist our selves talking about nifty or sensex.

In addition, we know that nifty is a large-cap index as a benchmark with which we can analyze our equity investment.

 

Here, in this article, I have tried to apply some technical analysis to nifty 50.

Nifty  level prediction 2025?…

Let’s do the monthly and weekly analyses for the index.

Nifty 50 Monthly Chart Analysis…

 

You can see blue and red trend lines in the above monthly chart.

In addition, the blue trend line refers to support, and the red trend line refers to resistance.

Normally, prices or the market will fall when a candle touches resistance, and the market will rise when a candle touches a support line.

In the above monthly chart of the nifty, you can see the bottom candle at the time of the Corona year, i.e., in 2020.

After the bottom formation, the market always took support from the support line and rose.

And also, you can see the market always corrected when ever market levels touched the resistance trend line, i.e., the red trend line.

So it is very clear that the market-up trend is in tact until the market is in between those red and blue lines.

But you should know, there will not always be an uptrend or there will not always be a downtrend.

After the super bull trend from the Corona bottom, the downtrend can start any time.

Hence, we should be on our toes and be cautious in our investments.

Is there any weakness in the Nifty 50 monthly chart? …

 

You can see in the above monthly chart that whenever price level touches resistance, the selling or the correction is not big.

In addition, with the help of the size of the candles, you can identify the weakness or strength in the market.

And we all know that a green candle refers to more buyers in that particular period candle and a red candle means more sellers in that particular period candle.

In addition, the bigger the body of the candle, the bigger will be the buyers or sellers in that particular period.

In the above nifty monthly chart, you can see small bodies and long shadows or long wicks in the election month of 2024.

So it is very clear that buyers or not strong enough in that particular month thought there is long wick or long shadow.

In addition, we can see momentum is missing and has formed small green candles for the next 3 months.

But we have a big red candle, which has a bigger body and negligible wick or shadow in November.

Here, in this entire rally from Corona year 2020 to till now, this kind of strong selling with a bigger red candle has not formed at resitance levels.

I will not say that the market rally is completely over and a bigger correction is around the corner.

But there is a higher probability of trend reversal after seeing weakness after election month.

And if the support line in the above monthly chart breaks convincingly, we may see a meaningful correction of 30% at least from the nifty of 26300.

What nifty 50 weekly chart analysis is telling?…

Already you understood that the red trend line is resistance and the blue trend is support.

You can see there are two lower lower lows and two lower tops formed in the nifty weekly chart.

So, we can call it that minor bear market channel formed.

However, the long-term bullish channel is not yet broken in monthly chart, which is first image in this article.

In addition, you can see the channel possibility in the nifty weekly chart with the help of red and blue trend lines.

Nifty will definitely continue its downfall as long as it gets a strong resitance when it touches the red trend line in the above nifty weekly chart.

Conclussion…

 

As market levels are still in the red and blue line range only.

But the size of the red candle in October month shows.

Then, there is a high probability of channel breakdown in nifty 50.

However, the weekly chart shows cases of the start of a downturn.

We can say confidently if Nifty breaks 24800 in December 2024 or in jan 2025.

and we can say that the nifty bigger fall is 100% confirmed.

And if that happens, you should wait to invest until the nifty-leevels resistance trend line in the weekly chart.

Finally, it is not safe to invest 100% of your funds in equity.

In December 2024, the monthly candle is also negative, and price is rejected from the top from the resistance line.

and looks like there is a channel formed in the monthly chart too.

So, the nifty fall will continue until nifty remains in range, like I said for nifty weekly chart range also.

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Finally, it seems like 17300 seems like a strong support zone.

So, its better to increase equity exposure until a meaningful correction in nifty.

And if your equity exposure is higher, its time to decrease that exposure.

The correction in nifty will continue until the monthly candle breaks the channel, i.e., the resistance trend line and closes above it, by taking strong support from the support trend line.

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Read, How to Predit Nifty Levels in the Future.

Also read, can you calculate the CAGR of Nifty for the next 10 years? …

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