Nifty Technical Analysis: Outlook and Trend for 24th Aug 2020

Medium Term Trend:  ↑UP (Changes to down below 10900)

Below 11400: Nifty opened with a 'gap-up' around 11400 and traded whole day around this level but couldn't manage to close above it, still closed with a gain of around 60 points at 11371 levels.

Yesterday we had a 'gap down' open and today the gap down area is covered with a 'gap up' opening ( though the close is exactly in the gapdown area and not above it). even thoug it failed to move above the opening area, this is still positive, and does open up positive options for Nifty (provided the levels around 11300-350 holds).

Levels around 11350-375 have been posting stiff resistance to Nifty and pushed markets down 2-3 times already . However none of the drop materialized into any major fall/correction and Nifty always managed to recover. Now we have spent too much time around this level which might shift resistance from 11375 to higher levels ( 11550-11600 levels). Ideally, as mentioned in the previous post, we would have liked to see the weekly close above 11385-11400 levels, that would have been a strong indication of markets intent to move towards higher level from here but even though that did not happen still Nifty almost held most of the opening gains so chances of markets moving further from here are still there but like we mentioned above, it needs to hold 11300-11350 now. If markets slips below 11300 then it raises question mark on the overall pattern once again.

Levels around 11350-11400 are pretty important as in Feb/March, Nifty had seen a massive fall from these levels ( all the way down to 7500) so its Natural for markets to see some hesitancy at these levels. Successful cross above this level should rule out any chance of markets going back and re-testing lower levels (8-9K) again in next few moths.

So in a nutshell, todays gapup move countered the gap down move we saw yesterday ( and created a sort of bullish 'island reversal' pattern). If Nifty can manage to hold 11300-350 levels in next few sessions then we can see much higher levels going forward. On the downside 11300  and below that 11110 are the critical levels to watch out for. For any serious correction to develop, we need Nifty to break below 11110 and then 11900 levels. Till that happens, the market trend remains up. 

Happy Trading!

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Nifty Technical Analysis: Outlook and Trend for 20th Aug 2020

Medium Term Trend:  ↑UP (Changes to down below 10900)

11400 Conquered: Nifty opened above 11400 and closed and traded whole day above the critical resistance of 11385.

Levels of 11350-375 levels had been continuously posting stiff resistance for markets and last Fridays fall from 11300+ to lows of 11110 did indicate that probably the current upmove is done with and markets have gone again in correction mode (as mentioned in our previous post too). However it wasn't so and as soon as markets climbed back above 11300-330 levels yesterday it became evident that upmove is resumed again and markets are headed towards 11400 + levels now.

All the corrections we are seeing in markets have been pretty shallow and ranging from 2-5% price wise &  2-5 days timewise. This is the new trend in the markets and we have to respect that. So unless theres a clear signal of downmove one should refrain from short selling ( atleast this is what we have been doing recently). If in doubt book profits and sit out, no need to short this markets ( not yet).

Now that Nifty has crossed all important resistance of 11380 levels, the gates to much higher levels towards 11600-11800 have been opened. 11380 was a critical level (as explained in earlier posts) and markets moving above it can have significant impact from medium/long term perspective. Daily close is above 11380 and if Nifty can manage a weekly closing above 11400 (another couple of trading sessions to go) then it will be another sign of markets gaining strength.

In summary for now market remains strong and holding 11300 levels (and a weekly close above 11400) could push Nifty towards 11600-11800 levels. On the other hand if Nifty slips below 11270-300 levels then it could mean start of another (shallow?) correction.Long position can be held till this level holds and one should refrain from short selling in this market.

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