Friday, January 10, 2020

Nifty Analysis: Outlook and Trend for 13th Jan 2020

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

Turning Strong: Nifty opened at 12250 levels and attempted a shot at 12300 levels however it couldnt sustain there and dropped towards 12250 levels (up 40 points). In the process it posted a Doji kind of candle today.

We have been mentioning since last few days that markets are strong and we are expecting markets to move up. Even when skepticism was high and Nifty broke below 12100 and then 12K levels, we maintained our view ( infact we entered in long positions when Nifty dropped below 12k levels). In last post we had clearly mentioned that :

"if Geo political tensions subsides ( and it should after today's event) and doesn't escalates any further, then we can expect a sharp swing on the upside". 

This is exactly what we got to see. Nifty recovered sharply and put more than 300 points from the lows it hit on Wednesday. Nifty has now even crossed above ( and closed) the gap area of Monday ( 12190-12220) which was the last hurdles for bulls. As soon as Nifty opened above 12220 levels today it cancelled out the previous downmove and reasserted its bullish trend.

Now there are many with bearish stance who are taking comforts from the fact that we reversed from 12300 levels and that 12300 is a top area for Nifty. well its possible ( anything is possible) but the chances of that are very less as of now. Unless Nifty closed below 12150-12175 zone it will not be wise to expect any sort of correction or downmove from Nifty.

12300 is a resistance and market is respecting it but it has been tested far too often and the chances are its going to be broken on the upside in near term. 

Happy Trading!

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