Market Analysis: Nifty 50 Index Poised for Volatile Moves Ahead

MUMBAI, India — The Nifty 50 Index is signaling potential volatility as it approaches critical levels following recent trading activity. Analysts suggest the index may be on the brink of a significant correction, with a strong resistance noted around the 26,300 mark.

Market observers are evaluating the index’s movement, particularly since it reached a high of 26,300 on September 27, 2024. The analysis indicates that the Nifty 50 has likely completed Minute Wave (i) at a low of 23,267, setting the stage for an anticipated expanded flat corrective wave towards the 25,000-100 range.

“The correction we are witnessing is unfolding as an expanded flat and could progress towards the 25,000 area before another drop occurs,” said a market analyst. The index has previously completed an Intermediate Wave (4) at a low of 15,200, followed by an impulsive wave that achieved new highs, leading to heightened investor interest.

Further technical assessments reveal that the index might be forming a potential impulse wave against the 22,700-800 range, indicating a complex market structure. If the index holds under various proposed wave counts, it could find itself testing lower levels before a rebound occurs.

As market fluctuations continue, the Nifty 50 is progressing towards potential targets, with Minute Wave (ii) marked in grey indicating corrective movement. Analysts stress the importance of monitoring the invalidation point set at 26,400, as breaching this level could suggest a more severe correction.

Meanwhile, foreign exchange markets are also reacting to broader economic sentiment. The EUR/USD pair remained stable near 1.0450 in early trading, following updates regarding U.S. tariffs and the ongoing Russia-Ukraine peace discussions.

On the other hand, GBP/USD gained strength above 1.2550 as traders responded positively to the delayed implementation of reciprocal tariffs, with expectations building around upcoming U.S. retail sales data.

Gold prices have demonstrated upward momentum during European trading, buoyed by market jitters around President Donald Trump‘s tariff strategies, which are increasingly influencing global trading dynamics.

In the cryptocurrency sector, Bitcoin has stabilized within a range of $94,000 to $100,000 over the past nine days, while Ethereum and Ripple have shown resilience, with gains of 3% and 7%, respectively, this week.

Investors are advised to remain cautious in this fluctuating landscape, as the Trump administration’s shifting economic policies are expected to lead to further tariff implementations and retaliatory measures from trading partners.