Nifty Technical Analysis: Outlook and Trend for 31st Jul 2020

Medium Term Trend: (Changes to down below 10700)

Expiry Blues: Nifty tumbled today as once again it touched levels around 11300 and forced its way down and lost more than 200 points from days high. It closed at 11100, down 100 points.

We have continuously been mentioning since last 6-7 days that till Nifty crosses 11300-330 levels and sustain, there is no point in going long. On the contrary one should look to book profits at current level.

We have been staying away from trading since last few days and it seems to be working well as market is not doing anything just making wild swings around 11200 levels.

Coming back to Nifty, nothing much has changed and same scenario is prevailing in the market hence we continue to maintain same view as well. Nifty is in 'correction mode' and its evident from market action that its not yet over. There exists some good support at 11050-25 level and market could try and test it tomorrow.If it holds then markets can move up again however if it breaks down then we can see some more weakness in near term towards 10750-10800 levels (which is the final support level for current uptrend we are witnessing).

So will keep it in short today, keep an eye of 11K level and weakness below it could invite more weakness on the other hand holding 11K and then moving above 11300 levels could start a new uptrend.

Happy Trading!

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Nifty Analysis: Outlook and Trend for 30th Jul 2020

Medium Term Trend: ↑UP (Changes to down below 10700)

Selling Emerges yet again: Nifty opened around 11300 levels, made a high of 11330 but couldn't sustain and crashed to 11150 levels. It closed at 11200 with a loss of 100 points.

Yesterday, when Nifty closed at 11300 there were many traders who saw this move as a 'breakout move' from the range. There was no blog update yesterday but we had tweeted in the evening that its not a breakout but market has just reached the upper ceiling of range and if its not crossed then we might go down again.

This is exactly what happened today, Though Nifty opened above 11300 it failed to sustain there and crashed again in the 11100-11200 zone where its been trading for last 5-6 trading sessions. Market is currently frustrating traders and just not interested in moving either way. Option buyers are often big losers in such markets as premiums decay very fast.

For now we continue to maintain (like we have been saying for last few days) that markets are rangebound and till we see a clear breakout its not worth trading on either side. We are seeing negative divergences which are raising a probability of markets falling towards 11K once ( if 11300 is not crossed). Below 11K markets can touch 11750-11700 levels. For now further fall below 11750 is looking highly unlikely but things can and will change as we move further.

Once expiry is out of picture we should be able to get a much clearer picture, till then markets remain in correction mode and falling a little more from here (towards 11K levels) is very much a possibility. Crossing/moving above 11330 levels would indeed be a positive sign and a indication that correction/sideways movement is ending.

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