Nifty Analysis: Outlook and Trend for 3rd Jul 2020

Medium Term Trend: ↑UP (Changes to down below 10000)

Exhibiting Strength: Nifty opened strong around 10500 and went on to touch 10600 levels. It finally closed around 10560 levels up 130 odd points.

In a matter of couple of days Nifty has moved from 10200 to 10600 levels i.e, a move of around 400 points. However we had already mentioned about it in last couple of posts and even tweeted yesterday when market was around 10400 levels for a possible target of 10550-10600 levels. Same is achieved already today.

We have raised our medium term pivotal level to 10K now. Nifty shouldnt break below 10k unless its changing its medium term once again.

Now moving forward we do expect market to find some resistance in 10600-650 zone but as long as 10400 holds, the current upmove is likely to stay (with occasional volatility). This month series is a big series with 6 weekly expiries. Its noticed that in big months Nifty usually moves with lots of volatility that means going up and down many times.

Now that Nifty has moved to 10600 levels the levels around 10350-400 should hold and in case Nifty break below it then it can and test 10K levels. On the upside levels around 10800-10900 are very much possible (as long as 10400 holds).

Overall the entire move from 7500 till now is still looking like a 'wedge' but its becoming more and more prominent which is very surprising. Anyways only a break below 10K levels could confirm the completion of wedge.

In Nutshell, market trend remains up from all perspective hence shorts should be avoided (as long as 10400-350 holds). Even when markets are looking ripe for correction they have a tendency to go on and on. So its better to stay with trend rather than take a contra trade. as far as trading is concerned , we had gone long at 10400 levels and booked part profit today around 10600 levels.

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