Tuesday, August 13, 2019

Nifty Analysis, Outlook and Trend for 14th Aug 2019

Medium Term Trend:  Down (Changes to Up above 11365)

Nifty Tumbles: Markets open flat and 11115 levels  but kept on getting weaker as the trading progressed throughout the day and gave up almost 200 points from day high. It finally closed at  10925 down 180 points.

 In the last couple of post we had mentioned the possibility of Nifty taking support at 10850 levels and moving higher. Nifty did take some support and even moved to 11181 but the upmove came to an abrupt end and Nifty tumbled back to 10900 levels. We had also mentioned that in case of downmove market should get some support at 10925-10950 levels and further fall is likely only below this trading range. Today markets has managed to close almost at the lower end of this support zone.

For tomorrow a slightly adjusted 10870-10900 zone becomes important now. If we see follow up weakness below 11900-870 levels and probably we can say that the move from 10800 to 11181 was a corrective move and same is over & the probability of Nifty making a new low below 10780 and then towards 10600 will increase further.

Market remains highly volatile and volatility may increase further in coming days. There is a chance that markets have formed some sort of bottom around 10780 levels ( provided 10870-900 holds) and if it holds then we can expect to see Nifty back again above 11K levels.

Happy Trading!

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