Nifty Tomorrow: Prediction, outlook and Nifty Trend for 18th Oct 2022

 Trend:👇(Down) - Reversal above 17450

Nifty @ 17311: Nifty beginning to exhibit strength.

Nifty has been in a long consolidation since oct last year when the prices had touched 18500 levels. Since then markets have failed to move above it inspite of making several attempts. However, on the lower levels, we have also seen lots of supports coming in. US markets were virtually making a new low every day, yet our markets have managed to outperformed US markets by a big margin.

Now looking at most recent charts, there is a likelihood that correction we are witnessing is getting matured & markets can open a fresh leg on the upside. If markets start trading over 17425-450 levels in coming 1-2 trading sessions then that would be a good sign for the bulls.

Nifty Daily

Looking at chart above, the last 8 weeks (~40 trading sessions) are largely matching the pattern observed in June/July 2018, when after a strong rally, the markets went into a sideways to bearish zone for 8 weeks and after that a breakout was observed which pushed Nifty much higher. Even now we saw a strong rally from 15K levels back to 18K and since then we are seeing correction which is largely corrective and has now completed around same time period of 8 weeks (~40 trading sessions). Even the other technical indicators like RSI/MACD etc are dancing to the same tune. 

Technical patterns are nothing but just a reflection of past and in case market continue to see a move above 17400-500 zone then it is possible that we see a similar rally even this time too (will not be surprised to see a new high above 18500 levels in that case).

In summary, overall trend is still down but its giving sign that correction is maturing and markets are looking for an excuse to breakout from this correction. Continuous strength from here is likely to push Nifty back towards 18K and 18500 levels. Bears have been given lots of opportunities but they failed to inflict any sizeable damage (as in markets are just 7-8% down from their all-time high). For bears to regain control they must break below 17K levels soon or bulls can run away with the game pretty soon.

Happy Trading!