Nifty Analysis: Outlook and Trend for 24th Jul 2020

Medium Term Trend: ↑UP (Changes to down below 10650)

Upmove  Continues: After a small hiccup yesterday, nifty recovered today and closed above 11200 levels with a gain of almost 80 points.

Like we mentioned couple of days, its possible that we some consolidation in the 11200-11300 range. Nifty has run up sharply from 10600 to 11200 hence some consolidation cannot be ruled out now. For immediate term ( next 2-3 sessions) if Nifty fails to move above 11300 levels and then goes on to break below 11100 then then its possible we see some more weakness towards 11000-10900 levels. As long as 10900 is intact, the upmove remains intact as well.

Charts are still showing strength only negative thing we can see is  that on hourly charts, some neagtive divergence has started building up. Hence we need to be observant and see if its break below 11100 and  then10900 levels from here. If that happens then it could be the first sign that short term trend is changing. Overall levels around 10600-10650 is the final stop/trend reversal pivotal level and breaking below it could indicate that some important top is done and market is ready for some serious correction.

In summary,if we see some correction which manages to break below 10900 levels, then we can drop towards 10650 levels once again. On the upside a successful move above 11300 could fuse new strenght in the upmove.

Happy Trading!

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Nifty Analysis: Outlook and Trend for 22nd Jul 2020

Medium Term Trend: ↑UP (Changes to down below 10500)

Nifty Continues to Soar: Nifty opened with a 100+ gapup this morning and maintained it through out the session. Finally closed at 11160 levels, up 140 points.

In last post we had mentioned that "there are chances that correction which started from 10850 levels few days back is already over (in choppy moves we witnessed in last couple of days) and now has opened a new leg on the upside. Technically its possible for Nifty to touch higher levels 11100-11300 from here"

In just couple of days Nifty has zoomed to 11200 levels already, in past 2 days we have seen 2 gapups. Now that we almost reached 11200 levels, markets are beginning to reach overbought zone. However that doesn't mean we will get to see a fall immediately. We may or may not see a correction as markets can stay in overbought zone for extended period of times. Having said this, this is the area ( levels around 11200-11300) where we can expect some pause. Market has run up sharply, almost 600 point rally in last 3-4 days hence some cooling off is expected.

On the downside, 10500-550 zone is the trend reversal point for Nifty for medium term and for short term, 10900 should act a good support. Any fall from here is likely to find support at 10900 levels or above. In case markets goes on to break 10900 levels then we can go and test 10600-10500 once again. On the upsid,e levels around 11300 are critical and if crossed we can see a further 300-400 point extension (towards 11800) in Nifty in coming sessions.

in Nutshell, inspite of markets entering overbought zone, there is nothing on charts which is suggesting weakness (yet). For bears to get into picture then need to break below 10900 levels in next 3 trading sessions (by Friday). If they manage to do it, then we can expect some more weakness and selling else bulls would continue to take prices higher and higher.

Happy Trading!

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

To see our recent trading calls for Nifty Algo- Pls click ⤇  Past Trade summary