NIFTY INDEX

Head & Shoulder pattern on NIFTY50

Ayan Bansal

2/3/2025

On November 12, 2024, I identified a potential Head and Shoulders pattern forming on the NIFTY 50 Index. This classic reversal pattern could signal a potential bearish move if the price broke below the neckline support. Based on technical projections, the ideal target was set at the depth of the head, marking a significant downside move.

Original Analysis (November 12th, 2024) :

Pattern Identified:

  • Formation: Head and Shoulders

  • Left Shoulder: Formed in mid-July 2024

  • Head: Peaked in September 2024

  • Right Shoulder: Not developed yet

  • Neckline Support: Identified around 23,886

  • Projected Target: Based on the head’s depth, a breakdown could lead to a drop of approximately 10%, bringing NIFTY50 close to 21,600

NIFTY's Chart as on 12th November, 2024

Current Market Analysis (February 4th, 2025) :

  • First fall below the neckline occurred in mid-November and from there the market bounced back to form the 'Right Shoulder' (peaking at approx. 24,800 level). Hence it was false breakdown

  • Second fall below the neckline occurred in the latter half of December and it has sustained since then. Hence confirming the breakdown.

  • The neckline (previous support) will now act as a resistance line.

  • The next major support is the low of June 4th which NIFTY formed on the Election Day. (~21,280)

  • According to the projected target from 12th November (~21,600) and the major support of (~21,280), the market could still correct by 8% - 10%.

NIFTY's Chart as on 4th February, 2025

NOTE : I am not a SEBI registered advisor. This blog is just for Educational Purpose and not an Investment Advice. 

NIFTY's Chart as on 22nd May, 2025

Current Market Analysis (May 22nd, 2025) :

  • First fall below the neckline occurred in mid-November and from there the market bounced back to form the 'Right Shoulder' (peaking at approx. 24,800 level). Hence it was false breakdown

  • Second fall below the neckline occurred in the latter half of December and it has sustained since then. Hence confirming the breakdown.

  • The neckline (previous support) will now act as a resistance line.

  • The next major support is the low of June 4th which NIFTY formed on the Election Day. (~21,280)

  • According to the projected target from 12th November (~21,600) and the major support of (~21,280), the market could still correct by 8% - 10%.