Nifty Analysis: Outlook and Trend for 10th Jun 2020

Medium Term Trend: ↑UP (Changes to down below 9500)

Takes a beating:Nifty opened flat and made another attempt to cross above 10300 but failed. It collapsed in second half to close at 10045 levels, with a loss of >100 points.

So from 100 points+ to 100 points down, that's how Nifty traded today. However we have been warning our readers since last 2 days about this possible fall. Yesterday we had mentioned in our post "Nifty is making some interesting pattern in last few days which is suggesting that probably ( I say probably) some bit of correction/sideways movement is still pending".

There were chances of market falling and same has materialized today. We had also mentioned that markets are not able to trade/close above its opening prices and that our own momentum indicator is showing loss of momentum which is not a very positive sign. We had squared off our longs around 10300 yesterdays and suggested that existing long positions should be exited below 10140 levels (below yesterdays low). Today markets have fallen further 100 points after breaking below 10140.

Now going forward, the short term charts for Nifty is damaged, there is no doubt it it. Today was the 5th day in a row where Nifty failed to close above its opening price and that is not a very good sign. For bulls to make a strong comeback, its important that Nifty start closing above its opening prices ( we need atleast 2-3 such closes). So even though the overall trend of the Nifty remains up, the short term trend has become a bit jittery and can cause some more weakness in the markets.

Now levels around 9990 and 9910 becomes very important. Incase market continue to fall then levels around 10K and 9900 will become critical from short term pespective. Holding these levels can bring another upmove in the markets. On the upside if we start trading positive then we need to cross 10300 levels with strong momentum and force then only we will be able to see further gains. hence we need to observe markets and trade accordingly.

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Nifty Analysis: Outlook and Trend for 9th Jun 2020

Medium Term Trend: ↑UP (Changes to down below 9500)

Tumbles from 10300: Nifty opened strong above 10300 levels but couldn't sustain above it and started sliding down. It gave up most of the gains ( around 150 points) in second half to close at 10167 levels, up 25 points.

In previous post we had mentioned that "Monday if Nifty sustain above 10170 levels then it can further move towards 10300 levels".

We did reach towards 10300 levels (infact opened there) but failed to secure any more gains beyond that and moved back towards 10150 levels.

Now the broad directions of the market remains on the upside but Nifty is making some interesting pattern in last few days which is suggesting that probably ( I say probably) some bit of correction/sideways movement is still pending hence we might not see this rally extending immediately, we may take a pause and only after that we see a fresh move on the upside.

Now lets discuss what we mean by 'interesting pattern'. Since last 4 days Nifty is opening higher but then moving down, call it profit booking or shorting it doesnt matter. What matters is that its not able to put up any gains after opening and always closing below the opening price. Now this is not a very good sign and could signal that markets are possibly still in a corrective phase ( for a short term perspective). On top of it our own momentum indicator is not able to make a new high (inspite of Nifty touching a new high and moving beyond 10300).

Going forward we need to see if Nifty manages to move 10330 levels, as further gains for now are likely above 10330 only. On the downside 10130 & below that 10050 will act as a support. If these levels breaks then we could fall and retest 9900 levels.


As far as trading is concerned, we had entered long position around 10130 levels on Friday which we exited around 10300 levels today ( we could see the momentum losing hence didnt find it appropriate to hold on to longs). If someone is still long in market then he should exit if market trades for more than 30-45 mins below todays low (10140) and then wait for a fresh opportunity to enter longs.

To join our Nifty buy/sell whatsapp message service during market hours, pls click⤇ Nifty Buy/Sell Algorithm  or whatsapp @ 9319321906

To see our recent trading calls (as soon as a position is closed, its updated here )⤇  Past Trade summary

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Nifty Analysis: Outlook and Trend for 8th Jun 2020

Medium Term Trend: ↑UP (Changes to down below 9500)

Rally resumes: After a very brief pause, Nifty once again moved up and crossed 10150 levels. It closed at 10140, up 110 points.

Since last couple of days we had been mentioning that its possible we see some sort of sideway move or correction before the up-move resumes however we had also mentioned that this should not be seen as fresh bearish move and Nifty can turn again on the upside anytime. We did see some pause but it lasted for just 2 days and 200 points.

Nifty had a resistance around 10100-125 levels and it sustained this level in the opening session today which once again has opened up possibilities of a fresh up-move by Nifty hence levels around 10100 could have been utilized to enter fresh long positions in the markets today.

Monday if Nifty sustain above 10170 levels then it can further move towards 10300 levels. At the time of writing this post SGX Nifty is already trading around 10300 levels ( however we don't give too much weightage to SGX Nifty).

So will keep short today. Overall Nifty is in a strong up trend and there is lot of disbelief and skepticism about the sustainability of this rally and frankly this is what making Nifty strong. There is nothing on the chart which is suggesting an immediate reversal from here ofcourse pullbacks and correction of 200-300 points can come at any time but for any big reversal its important 9800 level is broken first and then 9500 (which is our new pivotal point from medium terms perspective). From trading perspective 10100 is a good level to enter long and can be held with a SL of around 10k levels.

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Nifty Analysis: Outlook and Trend for 5th Jun 2020

Medium Term Trend: ↑UP (Changes to down below 9000)

Nifty Cools Down: Nifty witnessed some bit of profit booking today, it dropped towards 9950 levels and then pulled back up again above 10k levels to close at 10030 down 30 odd points.

We had mentioned yesterday that Nifty is looking a bit tired. We had written:

"Now looking into the charts we can definitely see some sort of tiredness creeping in so there is no harm in booking full/partial profits at this stage. looking at levels, if Nifty trades below 10050 tomorrow then it can fall to 9970-80 levels"

Today we did drop towards 9970 and broke it so some more weakness in the short term can not be ruled out in coming trading sessions. But mind you this weakness should not be construed as a fresh bearish move but just a pause before the next rally begins. This view is valid as long as Nifty is trading above 9700 levels. As long as the gap-up area holds , Nifty remains strong. Now Nifty may or may not visit 9700, thing about such corrections is that it can finish anytime and at any levels hence one is advised to look for trading options on the buy side.

We had mentioned yesterday that its good to book profits at current levels, Nifty is down around 150-200 points from yesterdays high already. For now we need to observe markets see what shape or form this correction is taking and take a trading call only once we see confirmation on the charts.

To join our Nifty buy/sell whatsapp message service during market hours, pls click⤇ Nifty Buy/Sell Algorithm  or whatsapp @ 9319321906

To see our recent trading calls⤇  Past Trade summary

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