Nifty Technical Analysis: Outlook for 26th Dec 2019

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

Profit Booking: Nifty today opened flat & failed to take out 12300 and dropped towards 12200 levels. It made a day low of  12202 & closed at 12215 down 50 points.

Yesterday we had clearly mentioned that the way Nifty is trading around these levels, its possible that we might see some weakness from these levels. Below is the excerpt from yesterdays update.

"Now that we have spent 2 days near 12300 levels (and the the way markets fell towards 12220 levels) is raising the possibility that probably the upwswing is maturing.Nifty today made a shooting star/hanging man kind of pattern which is also suggesting a probable correction/sideways movement from these levels"

Today nifty failed to move above 12300 and as a result dropped towards 12200 ( which is the lower end of this trading range). Now going forward, further weakness from these levels could push a bit more lower from here. Nifty needs to make a strong close above 12300 levels to put itself firmly back again on upward trajectory, till that happens we can see some bit of sidway correction/dowmoves.

Till now there is no sign that Nifty is heading towards some sort of trend reversal ( but if does then we will accordingly update) and the chances are that market can turn up anytime.

In Nutshell, overall its same as yesterday and since markets have closed in 12200-12220 range, a break of this range could push nifty slightly more but the overall trend remains up so shorts are not advised. markets can reverse anytime and the reversal could be sharp , trapping unsuspecting shorts.Profit booking is advised at current levels and fresh long positions are advised only once the current correction phase is over.

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