Nifty Analysis: Outlook and Trend for 23rd Jun 2020

Medium Term Trend: ↑UP (Changes to down below 9500)
 Nifty March Continues: Nifty had another positive session today and almost touched 10400 intraday. It gave up some of the gains to close at 10310 levels, up 67 points.

In the last post we had mentioned "In last 2 days we have seen quite a bit of short covering and its likely to continue till expiry atleast. There are still few shorts in the system ( probably holding with a SL of 10300 odd levels) therefore there is a high probability that markets will make a move beyond 10300 levels now ( probably towards 10500 levels)"

Well the short covering continue to take place which is pushing Nifty higher and higher and since Nifty closing level today was below10330 (which was previous swing high), our guess is few shorts are still in system hence markets are expected to remain strong atleast till expiry. If there is any correction in store for us then its likely to come only after expiry. Till then markets are likely to remain strong.

Going forward we see some bit of resistance near 10450-10550 zone, and if crossed then Nifty can go till 10800 levels as well before the correction sets in. Till the time there is confirmation on charts for any short term trend reversal, any sort of short selling must be avoided. On the downside 10100 has emerged as very strong support for Nifty and is likely to support Nifty should we see any fall.

So will keep it short today, view is more or less same as of yesterday, and we expect markets to remain strong as long as 10100 holds)/ Short covering is likely to continue in coming sessions as well which can push Nifty in 10450-10550 zone ( & towards 10800 above that). For any bearish option to open, we must see a quick fall below 10100 levels in next 2-3 sessions.

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