Nifty Analysis: Outlook and Trend for 17th Jul 2020

Medium Term Trend: ↑UP (Changes to down below 10350)

Seeking Direction: Nifty opened flattish and after spending some time around 11600-650 zone Nifty shot up and closed above 10700 levels with a gain of 120 points.

Since last few ways Nifty is running like a headless chicken and is not able to establish a clear direction. One day its bulls and next day its bears. as a result nifty is stuck between 10550 -10850 levels and just swinging wildly in this range.

However thing to note is that Nifty is indicating that it has probably already established some sort of top around 10900 zone. Yesterday there was an attempt and chance to reclaim new highs but it didn't materialise , was short lived and Nifty saw a very sharp fall from 10800 levels back to 10600 levels.

In last couple of days Nifty has indicated a strong support zone in 10570-10600 area. Nifty has taken support 3 times in last 3 days at this level. Now while the support is fixed at same level, the resistance level are falling down first it was 10895-Monday, then 10825-yesterday and 10755 today. In case market fails to break and sustain above todays high and once again drop around 10600 levels, then the chances are this support area wont hold. It is tested enough times already (with each test the support gets weaker and weaker) hence if the markets are strong this level should not be tested again break of this zone could likely push Nifty towards 10400 levels.

On the upside, Markets are finding resistance at every rise and until it takes out 10850 zone, the chances of markets falling again towards 10600 or lower will always be there. Markets are being treacherous and wild moves in either direction is just triggering SL on both sides. Generally such wild moves are seen when markets are preparing itself for some big trending move ( we saw such moves when Nifty was at 9300 levels In May, but till that move actually start, it could be tough and painful for positional traders.

Happy Trading!

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Nifty Analysis: Outlook and Trend for 15th Jul 2020

Medium Term Trend: ↑UP (Changes to down below 10300)

Nifty Tumbles: Nifty opened weak around 10750 levels and kept on moving down throughout the day.

It even broke below 10600 levels momentarily intraday but managed to closed just above it, still closed with a solid 200 points loss.

In last few updates we have continuously been mentioning about Nifty making some sort of correction from 10850 levels. Yesterday when Nifty opened around 10875 levels, we had clearly told our subscribers to stay away from entering long postions.

In previous post (for Monday) we had mentioned "move above 10870-90 could indicate that markets have finished with the correction and its ready to move towards higher level towards 11100-11300. On the downside, Fridays lows assumes a lot of significance. In case Nifty break and sustain below 10710-10700 levels for some time , then we could see some more weakness towards 10550-10600 levels"

Now dont like to boast but this is the power of technical analysis for you. Yesterday markets retreated exactly from 10890 (levels mentioned in advance on Friday itself) and today it broke below 10700 and weakness surfaced which pushed Nifty towards 10550 -10600 levels ( again all these levels were mentioned on Friday itself). 

Anyways so now that we have moved towards 10550-10600 levels, we need to see if this zone is holding out. It didn't break today but the danger is not out of the way, it needs to hold for coming 1-2 sessions as well in case it breaks then markets could be pushed to 10350-10400 levels which is the next major ( & final) support for this upmove. Below 10350 levels some material changes could start appearing on charts hence its extremely crucial how Nifty trades in next few session. Holding on to 10550 levels and making a move above 10750 levels could push Nifty on track whereas break of 10550 levels will be one more victory for bears and I must mention that the way Nifty broke crucial level today, the chances of 10550 level breaking is higher than that of its holding.

Happy Trading!

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)