Medium Term Trend: ↑UP (down below 11550)
Bounce Back Continues: Nifty opened flat but after trading flat for some time it dropped to 11820 levels. It traded around 11820-11840 in the first half and moved to 11900 levels in second half. it closed at 11910 up 45 points.
After opening around 11880 levels, nifty once again started showing weakness and started drifting around 11800 levels however support came at 11820 levels and lifted the markets up. In the process today Nifty hit a high of 11917 which was higher than its previous swing high of 11911 ( posted on expiry day). Yesterday we had mentioned that if the current rally is only due to US-China trade easing up then it wont sustain for long and should reverse immediately else markets could add even more points. Though markets started a mini sell-off in the morning the fall got arrested soon and markets started a march towards 11900 levels once again.
Going forward, Nifty will see some resistance in 11940-975 range & it will be interesting to see how Nifty tackles this range. Nifty seems to have done good amount of consolidation around 11800 levels so the chances of Nifty surpassing this resistance have increased now. A more important resistance now sits at 12050-75 levels, which is also the high markets hit on election day & is been more than a month and Nifty has still not been able to take it out. So for any bullish scenario to play out, Nifty should take out this resistance very soon.
As we have been saying that though markets are stuck in a range for last 3 months, its now probably ready to break this tight range and initiate a strong trending move. Nifty showing strength from here and surpassing 12050-75 could push Nifty towards much higher levels and on the downside if 11815-800 breaks then Nifty could drop to 11750-25 levels and below that 11650-625 will continue to provide support.
Happy Trading
Bounce Back Continues: Nifty opened flat but after trading flat for some time it dropped to 11820 levels. It traded around 11820-11840 in the first half and moved to 11900 levels in second half. it closed at 11910 up 45 points.
After opening around 11880 levels, nifty once again started showing weakness and started drifting around 11800 levels however support came at 11820 levels and lifted the markets up. In the process today Nifty hit a high of 11917 which was higher than its previous swing high of 11911 ( posted on expiry day). Yesterday we had mentioned that if the current rally is only due to US-China trade easing up then it wont sustain for long and should reverse immediately else markets could add even more points. Though markets started a mini sell-off in the morning the fall got arrested soon and markets started a march towards 11900 levels once again.
Going forward, Nifty will see some resistance in 11940-975 range & it will be interesting to see how Nifty tackles this range. Nifty seems to have done good amount of consolidation around 11800 levels so the chances of Nifty surpassing this resistance have increased now. A more important resistance now sits at 12050-75 levels, which is also the high markets hit on election day & is been more than a month and Nifty has still not been able to take it out. So for any bullish scenario to play out, Nifty should take out this resistance very soon.
As we have been saying that though markets are stuck in a range for last 3 months, its now probably ready to break this tight range and initiate a strong trending move. Nifty showing strength from here and surpassing 12050-75 could push Nifty towards much higher levels and on the downside if 11815-800 breaks then Nifty could drop to 11750-25 levels and below that 11650-625 will continue to provide support.
Happy Trading
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