Tuesday, March 3, 2020

Nifty Analysis: Outlook and Trend for 4th Mar 2020

Medium Term Trend: ↓Down (Changes to up above 11700)

Positive Day : Nifty finally had a day where it managed to protect the lows of previous day and closed almost near the high point. It closed at 11300 up 170 points.

Nifty had been continuously falling since last 9-10 days making new low everyday however trend reversed today and Nifty managed to regain some of the points it had lost recently. Yesterday we had clearly mentioned that Nifty has been falling since last 10 days and the zone around 11K-11100 is a good support zone for Nifty and its likely that market try to make some sort of base around these levels hence a bounce back is likely and expected from these levels. Today we got exactly that and Nifty put up a good rally of ~200 points. We had even suggested a buy near this levels and though we didnt get any opportunity today, there was a good opportunity available yesterday.

Going forward we need to see if Nifty manages to make a move up above 11400-11450 levels (yesterdays high). Trading above todays high and then ultimately filling the gapdown area of 11450-550 will be very positive for Nifty however its not going to be easy. For overall health of the market its important that nifty grind and consolidate for some time before attempting a move on the upside. If Nifty fails to take out 11400 then we are again likely to drop towards 11K and below that 10600 levels, all depends on how nifty trades in next few days. 

In Nutshell though the overall trend of Nifty remains down, there is a likely hood that the bounce extends further form here ( time wise and price wise). However if Nifty fails to cross above 11400 levels then there is a chance of nifty revisiting 11K levels once again and if 11k breaks then its heading straight towards 10600. From trading perspective positional shorts should not hold their position above 11400 and for those who entered longs entered around 11100 part/full profit booking is recommended at current levels. VIX is trading around 25 which is pretty high ( from Indias perspective).

Happy Trading!




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