Monday, November 4, 2019

Nifty Analysis, Outlook and Trend for 5th Nov 2019

Medium Term Trend:  UP (Changes to down below 11375)

Upmove continues: Nifty inched up further 50 points to close at 11954 levels.

In the previous post we had mentioned that uptrend in Nifty remains intact hence buying on dips strategy should be adopted for now and one must refrain from shorting at this stage. We had also mentioned that even though markets are strong and likely to move up further from here there is a likelihood of markets sliiping from here a little as some bit of tiredness is creeping in the markets.

We did see markets slipping from 11950 levels on friday however today markets have againg bounced back and closed just a tad below Fridays high. For now the same view stands even now, we continue to see some bit of tiredness in the market which could result in some sort of a fall or some sideways movement ( mind you its just a probability for now) for short term. If we do indeed see some correction from these levels then markets can slip to 11650-11700 levels. 11650 is a very strong support for Nifty and markets are not likely to break this level easily however in case it does then we can drop further towards 11450-500 levels. 

Overall trend of the markets remains on the upiside and as long as 11400 is intact the trend remains intact too and if do see some correction which fails to break below 11650 and 11400 then it could prove to be an excellent buying opportunity once again. Shorts are suggested only below 11400 ( some bit of shorting can be done once 11650 is broken for a quick gain of 100-150 points with adequate SL). on the upside a strong close above 11980 levels would probably negate the chances of markets giving a short term correction from these levels.

Happy Trading!

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