Possibility of downside for NIFTY?

3 Ogo 2022

A triple top pattern can be observed forming on the 15 minute chart of IN1! (SGX Nifty Futures).
So far the 3rd top is yet to be confirmed but optimistically speaking it seems probable.
2 more reasons supporting this are - the rise in volatility and the upward movement of the market itself over the last week.
The US-China tensions are exerting a pressure of their own, the RBI meeting also seems to keep participants on their toes.

Time to be cautious!

Note: I'm not a Financial Advisor or Analyst, this is simply my observation. Take all trading/investing decisions with due consideration.

3 Ogo 2022

Nota

The 3rd top isn't forming as expected, it's my understanding that this is not just due to buying activity but rather also due to the 'lack of selling pressure'. I support this claim by pointing towards the low volume for the buying.
A reason could be that the market is waiting for a cue to react to - any sort of information regd RBI's meeting, interest rates, inflation or the global markets.

I'd still wait and be cautious, this isn't exactly a 'go long' indication to me.

4 Ogo 2022

Nota

Although the 3rd top did not form as expected, the markets still moved down with considerable volume indicating a good amount of selling pressure.
I attribute this to the market factoring in possible unfavorable news in tomorrow's RBI address by Shaktikanta Das.
At it's lowest point, NIFTY was down 1.30% and looked like a bearish engulfing on the day chart.
Currently, it has receded, possibly due to buying or closing of intraday short positions.
Today could be a day of volatility as well.
The likelihood of the downtrend continuing can't be completely written off but if the buying activity holds the price stable the chances of NIFTY going upwards would increase significantly.
More clarity could only be expected after tomorrow's address.