Nifty Analysis: Outlook and Trend for 17th Jan 2020

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

Rangebound: Nifty closed flat today. It opened around 12350 levels and moved in a tight range of about 50 points.

In last update we had mentioned :

"Nifty has given 2 consecutive close above the 12300 levels so we now can safely assume that market has good support in 12250-12300 zone. Going forward whenever we see a correction it will be interesting to see if it takes support at 12250-12300 zone"

Yesterday, Nifty fell towards 12275 levels and bounced from there which proves our point that support exists at 12300 levels. Having said this, even though the market has bounced from 12275 levels, the move is not appearing very strong as of now. Today markets hit a new high of 12390 levels but the way markets are trading since last couple of days is suggesting that probably some bit of tiredness or lethargy is creeping in the markets. Ideally we would have liked to see a stronger bounce from 12300 levels.

Next couple of trading sessions could be interesting and we need to see if 12300-12250 is tested again (Ideally speaking the important support level should not be tested very often). We need to be vigilant and see if 12300 is holding or not, if this level breaks then probably we can see some more weakness in short term. But please note that overall trend of the market still remains bullish and if do see some weakness then most likely it will just be a  pullback. On the other hand if market makes a strong move above 12400 levels in next 1-2 trading sessions than we can expect some more upside in near term.

In Nutshell, if 12300 breaks then some more weakness (timewise or pricewise) is likely whereas a strong move above 12400 levels could result in some more upside. Market trend (for now) remains up so keep that in mind.

Happy Trading!
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