Nifty Tomorrow: Prediction, outlook and Trend for Week 07th Jun 2021

 

Medium Term Trend: ☝ UP (Changes to down below 15000)

Nifty @ 15670 - Consolidating at @ 15700

Since last update (May end) Nifty has added  further ~500+ points and continue to trade strong. Regular reader of our blog are aware that we had been talking about this upmove/rally when Nifty was at 14300-400 levels in March/April. 

Today, once RBI announced no change in repo rate and downgraded FY21 GDP growth from 10.5% to 9.5%, there was a small sell off but it was quickly absorbed at 15640-650 levels and bulls prevented further damage. Now market has reached a stage where it moves in positive direction in absence of any news and a negative news merely causes it to take a pause. Market participants & general public is still in disbelief and now are waiting for a big correction but so far its eluding. It will come one day but the current chart are are suggesting that its probably some distance away and might not come immediately.

Nifty is now in unchartered territory and any level on upside is possible hence its not wise to talk about higher levels and resistances but levels around 16k-16500 are very much possible in this wave. On the down side we see 3 strong area of supports.

For short term, we have decent support at 15550-75 levels & below that very strong support exists at 15300-25 level can see strong buying emerging and then final support rests at 15K below which the medium term trend will change to down. 

In Nutshell, market are in slightly overbought territory ( as its moving in one line since past many days)

 but markets can stay in overbought territory for long hence its not a reason to go short but continue to maintain long position with tight stop losses. Markets are strong and in bullish zone now and there is no reason why it cant move beyond 16K in this upmove. Keep a tight SL, exit when market exhibits sign of weakness and enter long again when strength remerges should be the trading strategy for coming week.

Remember money is made only by riding a trend and not by questioning it and predicting its reversal (that way you will only lose your capital).

Happy Trading!

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