Wednesday, July 3, 2019

Nifty Analysis, Outlook and Trend for 4th Jul 2019

Medium Term Trend:  ↑UP (down below 11550)

Cautiously Positive: Nifty opened flat and traded around 11900-920 for most part of the day. It made a high of around 11940 but failed to sustain and closed at 11915 levels up 6 points.
 We have been mentioning that 11940-11975 is a resistance level for Nifty (and 12050-75 after that) Today Nifty tested 11940 but didn't cross it and pulled back a little. We had also mentioned Nifty has done a good amount of consolidation at 11800 levels therefore the chances are that this resistance will be taken out. Though markets failed to take it out today, it remains to be seen if this level can hold Nifty in coming session(s).

One thing to notice is that this entire rise from 11600 level is looking like an 'ending diagonal' or 'rising wedge' which can have some bearish implications if 11820-810 is taken out hence 11800 should be the deal top losses for all long positions for now. Another thing worth noticing is that US markets have surpassed their previous 52 weeks high and trading ~1% above their previous highs.

Overall we continue to believe that there is a probability of markets starting a trending move from these levels however for that to happen Nifty needs to take out 12050-75 levels (for bullish options) and 11550 levels (for bearish trend). Nifty is just 100-150 points away from a very importance zone.

For immediate terms 11800-810 level ( yesterdays low) and 11975 becomes important and break of these levels will push Nifty to test its major support (11550) or resistance (12075) area.

Happy Trading!

 

No comments:

Post a Comment