The NIFTY 50 and the KOSPI are edging lower. Last week’s three-month-old uptrend appears to be stalling. The KOSPI broke beneath a horizontal trendline assistance at 2,432 and retreated, which confirmed that the downtrend has resumed. In addition, the index has rejected back-to-back larger ranges, which suggests that the bulls have had to take a seat.
The NIFTY 50 September Futures is trading at 17,551. The index has been struggling to breach the 17,800-17,850 resistance area. The next support levels are at 17,480 and 17,400, respectively. In order to turn bullish, the NIFTY must decisively break through the 17,850 resistance zone. From there, the index could rally as high as 18000.
Technical Analysis: The Nifty50 has recovered slightly from its recent lows. However, it has reversed sharply on Friday. A short-term chart pattern suggests that there is still more downside ahead. Nifty may slide down to 17300 levels in the next few weeks.