Nifty and German 40 Nifty is slowly closing the August gap

• This morning, the Nifty Index reached a new weekly high of 24867.35, continuing its recovery from last week
• During this morning’s Asian trading session, the German 40 formed a new weekly high at the 18530.2 level

Nifty chart analysis

This morning, the Nifty Index reached a new weekly high of 24867.35, continuing its recovery from last week. During the Asian trading session, the movement took place in the 24800.00-24850.00 range. The narrow ranking did not give us space to consider the future trend. We expect to see more concrete moves of the Nifty index in the next session. For a bullish option, we need an impulse above this morning’s high to a new weekly high.

That would indicate that we are returning to the bullish side. Potential higher targets are 24900.00 and 25000.00 levels. For a bearish option, we need a negative consolidation and a drop in the index below the 24770.00 daily open price. With that step, we move to the negative side and a new daily low. Potential lower targets are 24600.00 and 24500.00 levels.

German 40 chart analysis

During this morning’s Asian trading session, the German 40 formed a new weekly high at the 18530.2 level. So far, the index’s movement has remained high, and we are now at the 18490.0 level. Somehow, we manage to stay above the daily open price on the positive side. We need a continuation of the positive consolidation to return to the previous bullish trend.

Potential higher targets are the 18550.0 and 18600.0 levels. For a bearish option, the German 40 must pull back below the 18400.0 level, which moves below the daily open price and the EMA 50 moving average. After that, we have to continue the pullback and look for a new support level. Potential lower targets are the 18350.0 and 18300.0 levels.