Nifty Tomorrow: Prediction, outlook and Nifty Trend for 21st Jan 2022

Medium Term Trend:☝/👈👉 (UP/Sideways with upward bias)

Nifty @ 17757 - Nifty loses 600+ points in 3 days

Before we start analyzing markets, lets see what we had discussed last time around in previous update.

2nd Jan- "it may or may not run away above 18K and 18500 levels in a hurry and might just consolidate between 17-18K levels for some more time but the bias and trajectory even in that scenario is likely to remain on the UP or positive side"

When markets were trading below 17K levels we were clear in our analysis and had mentioned that downside seems to have played out and markets can move towards 18000/500 levels (it may or may not cross those level anytime sooner). Now even today we maintain our stand, even though markets have shed about 600 points in a matter of few days nothing has changed still. From here two options are likely to playout.

A) Market start making quick V shape recovery in coming trading sessions and move strongly above 18500 levels and touches 19K an beyond.

B) Market consolidate between 18500-17500/400 levels ( in a 1000-1200) point zone for few more weeks and then make a breakout.

There is a also a third option that market once again falls below 17K levels ( which is our least preferred scenario for now hence we are not considering it for time being. If we see sustained selling/weakness below 17500/400 levels then we will have a relook at our options again and post the update here.

In Summary, both the options mentioned above are positive and highlights the underlying strength in the markets hence trades can be taken accordingly. Till now we have not seen any reversal on the charts which suggests that we need to change/modify our stand (it is too soon for that). Its likely that market is 'adjusting' itself for the upcoming big event (Budget) hence some rise in volatility is totally expected. As a trader one has to be quite nimble capable of making a quick entry and exit and as always, its prudent to reduce qty slightly before such an event.

Dont try and predict market, always react to it.

Happy Trading!