Nifty Analysis: Outlook for 01st Jan 2020

Medium Term Trend:  ↑ UP (Changes to down below 11770)

Slips Below 12200: Nifty opened in negative territory and after spending most part of the day around 12200 levels, it fnally broke it towards the end and touched 12150 levels. It closed at 12170 , down 85 points.

On expiry day, Nifty had crashed to around 12100 levels and the very next day it bounced back. However the move from 12300 to 12100 levels ( last week) had taken 3 days, now another 3 days have passed since but markets have failed to hit a new high above 12300 (100% of the fall is not retraced), Which raises the question if market still remain in corrective/sideways mode.

Manner in which Nifty had risen post expiry had given an impression that correction is over and markets are ready to make a new high but today once it broke below 12200, it became clear that markets (may be) wants to spend some more time in 'correction mode'. Now correction mode can be a move down from here or a sideways trade.

Needless to say that we continue to believe that markets are in a bull trend and so far nothing is there on the charts which is suggesting otherwise. 12100 should act as a good support (since it was the previous high) and below that 11950-12K should act as a major support. Till the time markets are trading above 11950 levels, we do not recommend going short as the uptrend can resume anytime and without warning. Only below 11950 ( that too if its taken out swiftly) can one think of a quick short entry.On the upside  12275 remains a key hurdle for now and if markets manages to move above 12275 then higher levels towards 12400-600 can be seen.


Wish all our readers a Very Happy New Year and Happy Trading!