Wednesday, August 21, 2019

Nifty Analysis, Outlook and Trend for 22nd Aug 2019

Medium Term Trend:  Down (Changes to Up above 11300)

11000 Breaks: Nifty opened flattish but kept pushing lower and broke 11K.It threatened to break below 10900 but settled at 10917, down 100 points.

Yesterday we had mentioned that if 11K breaks then we can once again drop back to 10850-900 zone. Inspite of Nifty falling back to 10900 the short term upmove which started from lows of 10780 is still very much on and it would be a tad early to assume that the pull back is over and Nifty has started another move on the downside.

Nifty has some good support in the range of 10850-10900 and as long as it holds , it can again start moving up. For near term Nifty has good resistance in 11050 levels and Markets must cross 11050 in case it wants to start moving up.

For now the entire fall from 11170 levels is looking like a corrective ABC pattern ( which is in its last leg C) if market takes support at 10850-900 level and once again start moving up then probably the corrective leg will be over and market will open another leg on the upside which could take Nifty all the way to 11300 levels. On the other hand continuous weakness below 10900 and then below 850 levels could signal end of the bullish possibilities for now and Nifty will be in danger of testing 10600-700 levels.

Happy Trading!

 

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