Nifty Analysis, Outlook and Trend for 26th Nov 2019

Medium Term Trend:  ↑ UP (Changes to down below 11500)

Upmove resumes: Nifty opened in positive zone around 11950 levels and kept on inching  up through out the day. It closed at 12080 up a whopping 165 points.

In previous post we had mentioned a possibility of Nifty heading for an another short term correction ( since 11970 was effectively broken). However we had also mentioned that no shorts are advised at this stage and long positions should be entered once 12K is taken. 12K was taken out in the morning session itself and after that markets putup another 80 points or so.

When markets are in a uptrend its very difficult to say for how long and how deep the corrections will lasts. Correction in strong uptrend can finish even in hours if not in days.In such markes one is better off buying at every available opportunity. Now the way things are unfolding it seems markets are in for a new all time high. In any case sensex has already broken above its all time high so Nifty is likely to follow suit.

This time Nifty has moved up with a strong momentum hence the chances of reclaiming 12100 are pretty high. Its likely that Nifty can test 12200-12300 levels however from the technical perspective there is a strong chance of Nifty begining another round of correction which might bring it again towards 11900-12K levels.

There are quite a few negative divergences which are suggesting that market may not be able to go much higher immediately.However again this doesnt mean that one should be looking to go short at current or above 12100. Its very much possible that markets just runup from here. So either way market has to go up either we consolidate first or then move up or we move up straightaway. Unless 11500 is broken we dont see any possibility of any significant correction in near term.

Happy Trading!

Nifty Analysis, Outlook and Trend for 25th Nov 2019

Medium Term Trend:  ↑ UP (Changes to down below 11400)

Weakness resurfaces : Nifty failed to sustain 11970-950 levels and even dropped below 11900 levels during intraday trading. It made a low of 11880 levels and closed at 11915 levels down 55 points.

In previous post we had mentioned that if Nifty hold above 11970 then we can expect anoher leg on the upside. Nifty traded around 11970 level for most part of the day yesterday and today it broke below the level. We had also mentioned that Bears need to take out 11950 levels (11900 preferably) for some sort of bearish scenario to emerge. We had also mentioned that since last 2 weeks , markets are seeing a sellout on Friday.

Markets did see a selloff today again ( in line with last 2 weeks trend) and bears also managed to broke below 11900 ( even though closing is above 11900 levels). Considering all these things ( failure to hold 11970-11950 levels and breaking of 11900 levels), its very much likely that for a very short term markets have again entered a small bearish or corrective zone.

However that doesnt mean that a trend down on the downside has started, all it means is that market may take anothr pause and not break above 12K levels in jiffy. Most daily momentum indicators are also crossed over in negative terrritory.

There is possibility of some sort of corrections from here hence long positions should be exited for now and fresh longs are advised only above 12K levels. Overall trend of markets still remains up so no shorts are advised at current levels as markets can complete this correction anytime and stage a V shaped recovery. If markets does fall from here then it could offer an excellent buying opportunity once again.

Happy Trading!

Nifty Analysis, Outlook and Trend for 21st Nov 2019

Medium Term Trend:  ↑ UP (Changes to down below 11400)

12K Conquered : Nifty opend around 12K and went on to touch a high of 12040 levels. It dropped a little from there and settled at 12K , up 60 points.

In previous post we had mentioned- 

"If markets manages to break above 11970-75 levels then we can expect another sharp upmove on the other hand a breakbelow 11850 can drag market a little bit more However trend remains up as long as 11400 holds"

Market opened above 11970 and and went on to move above previous high at 12038. Even though market failed to close decisively above 12K levels, the fact that it has closed above 11970 levels augurs good for the medium term. If Nifty shows strength tomorrow as well and manages to give a positive clos then it can move further up from current levels.For a bearish scenario to emerge from here markets needs a weak close below 11950 levels (Ideally 11900) tomorrow/Friday

More time market spends above 11970 levels, more the chances of it breaking above new all time high. However it must be noted that since last 2 weeks markets are seeing a selloff on Friday so it will be intresting to see if same is repeated this week as well.

For now, as long as 11950-11970 is maintained there are chances of markets breaking above new all time high and for a bearish scenario to emerge, bears should act now and act fast as the scenario is favouring and changing towards bulls side for the time being.

Happy Trading!

Nifty Analysis, Outlook and Trend for 20th Nov 2019

Medium Term Trend:  ↑ UP (Changes to down below 11400)

Range-Bound Movement : Nifty opend around 11930 but quickly dropped below 11900 once again. It moved up above 11900 and traded around 11920-30 for most part of the day before making a last minute dash towards 11950. It finally closed at 11940 levels, up 55 points.

In our last update we had mentioned: -

"keep an eye on 11950-11975 levels , a strong move above these levels could indicate that sideways trend is probably over for now and markets could move higher from here. However on the downside if Nifty start trading below 11875-11850 levels then probably it would mean the correction might stretch for some more time on the downside."

Nifty yesterday did drop to 11870 levels but didnt break it inspite of trading for most part of the day around this level and today it once again took support near 11970 and went on to touch 11960 which is the upper end of this trading range. So far Nifty has not broken the range but since it held on to 11870 and closed near the top end of the range, there is a chance that it could be broken on the upside.In case that happens and Nifty goes on to break (and sustain) 11970 levels, there is a chance that market start moving up and touches higher level. On the other hand if Nifty again drops below 11900 and goes on to break 11870-50 levels then theres a strong probability of current correction extending a bit more ( price wise and time wise) from here.

So for now we remain range bound but if markets manage to break above 11970-75 levels then we can expect another sharp upmove on the other hand a breakbelow 11850 can drag market a little bit more However trend remains up as long as 11400 holds.

Happy Trading!