Nifty Analysis: Outlook and Trend for 7th Jul 2020

Medium Term Trend: ↑UP (Changes to down below 10225)

Exhibiting Super Strength: Nifty continued its relentless march on the upside and touched 10800 levels today and closed at 10760, up 150 points.

Nifty is moving sharply on the upside, in the last update we had maintained a view that Nifty could touch 10800-11000 levels in the current upmove, well the targets are achieved in just one day.

Now moving forward this could be the area ( level around 10850) where we see some pause or consolidation. Markets have run up sharply and are now beginning to enter overbought zone so its not wrong to start expecting some hesitancy at these levels. However it doesnt mean that one should go and short here, absolutely not. Markets have a tendency to overshoot and undershoot its targets so a move towards 11000 and even above is also possible. But at the same time it does make sense to book some of the profits in the long position. In such situations its always better to keep trailing stoplosses.

 

Looking at charts, in last post we had mentioned levels around 10400-450 for short term SL. Now level around 10600-650 could be used as trailing SL and further weakness in Nifty is possible only if these level breaks till then it wont be wise to expect weakness in Nifty.

Another important change we have done is we have moved the medium term pivot level to 10225 levels. Regular reader of our blog must be aware that last week when markets were falling, we were continuously talking about the important of 10225 level. And even though Nifty broke it intraday, it was always defended on closing basis. Now we feel its a good enough support for medium term and if broken can force the entire trend to 'down'. So be observant and keep a watch on the levels mentioned above.

Happy Trading!

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Nifty Analysis: Outlook and Trend for 6th Jul 2020

Medium Term Trend: ↑UP (Changes to down below 10100)

Maintaining Strength: Nifty continued its upwawrd march and closed above 10600 with a gain of 50 odd points in friday.

Nifty has a good support now at 10400-50 levels and till that holds, it can continue to move higher and touch new highs. Levels around 10800-11000 are also possible in this current wave. However one negative thing we are seeing on the charts is that this moveup is not supported by RSI and we are seeing some negative divergence on hourly charts. But at the same time, on the price charts, there is nothing which is suggesting any weakness. So we have to be watchful and keep looking for any sign of weakness on price charts which might start creeping next week.

Going forward we need to see if if and when Nifty start to show weakness and (as per fridays close) move below 10400 levels could be crucial as that would be the first sign which could indicate that this current upmove is maturing till then if there is any dip which matures above 10450-10450 levels then same could be a good opportunity to enter long positions.

In summary Market trend remains up, break below 10450-400 would be the first sign that this upmove is now maturing and below that 10100 is the key level level now which would determine the medium term of the markets. Till then, trading wise, it makes sense to stay with current trend which is up for now.

To Join our Nifty algo buy/sell whatsapp message service during market hours, pls click⤇ Nifty Buy/Sell Algorithm  or whatsapp @ 9319321906 

To see our recent trading calls for Nifty Algo- Pls click ⤇  Past Trade summary ( updated once existing position is closed)

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Nifty Analysis: Outlook and Trend for 3rd Jul 2020

Medium Term Trend: ↑UP (Changes to down below 10000)

Exhibiting Strength: Nifty opened strong around 10500 and went on to touch 10600 levels. It finally closed around 10560 levels up 130 odd points.

In a matter of couple of days Nifty has moved from 10200 to 10600 levels i.e, a move of around 400 points. However we had already mentioned about it in last couple of posts and even tweeted yesterday when market was around 10400 levels for a possible target of 10550-10600 levels. Same is achieved already today.

We have raised our medium term pivotal level to 10K now. Nifty shouldnt break below 10k unless its changing its medium term once again.

Now moving forward we do expect market to find some resistance in 10600-650 zone but as long as 10400 holds, the current upmove is likely to stay (with occasional volatility). This month series is a big series with 6 weekly expiries. Its noticed that in big months Nifty usually moves with lots of volatility that means going up and down many times.

Now that Nifty has moved to 10600 levels the levels around 10350-400 should hold and in case Nifty break below it then it can and test 10K levels. On the upside levels around 10800-10900 are very much possible (as long as 10400 holds).

Overall the entire move from 7500 till now is still looking like a 'wedge' but its becoming more and more prominent which is very surprising. Anyways only a break below 10K levels could confirm the completion of wedge.

In Nutshell, market trend remains up from all perspective hence shorts should be avoided (as long as 10400-350 holds). Even when markets are looking ripe for correction they have a tendency to go on and on. So its better to stay with trend rather than take a contra trade. as far as trading is concerned , we had gone long at 10400 levels and booked part profit today around 10600 levels.

To join our Nifty algo buy/sell whatsapp message service during market hours, pls click⤇ Nifty Buy/Sell Algorithm  or whatsapp @ 9319321906 

To see our recent trading calls for Nifty Algo- Pls click ⤇  Past Trade summary ( updated once existing position is closed)

Happy Trading