Nifty Technical Analysis: Outlook and Trend for 12th Oct 2020

Medium Term Trend:  ☝UP (Changes to Down below 11250)

Nifty Continues to Rise:  Nifty has been rising non stop since last 10 trading sessions (posting higher lows) and barring just one trading session it has managed to post a higher high on each trading day.

What we are seeing in markets is a classic example of how markets can continue to run when it in super bullish zone and how it can continue to ignore factors like 'overbought zone' etc. Even though markets are looking tired and momentum is falling with successive rise, there is nothing on the price charts which is suggesting a reversal yet.

On Thursday, we saw 4th consecutive gapup on the daily chart now generally when we see consecutive gaps, after 3-4 gaps markets usually reverses and fill the 4th gap ( in may cases it then goes on to fill all gaps). So to complete this wave of bull run which started from 10800 levels, we need to see this gap filled which is sitting at 11750-11800 levels.

Only when market falls below this area can we expect the completion of this wave (which started from 10800 levels) and markets might go in for some kind of correction and whether that correction is just a temporary breather or turns into some sort of bigger reversal, can be judged later only.

For medium to short term perspective the levels of 11750-11800 and below that 11600 are rock solid support and assumes a lot of importance. Any chance of bigger correction or bigger fall can materialize only if these levels are taken out. Till that happens, markets can continue to move up.

Happy Trading

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Nifty Technical Analysis: Outlook and Trend for 07th Oct 2020

Medium Term Trend:  ☝UP (Changes to Down below 11100)

Nifty Getting Stronger:  Nifty has been rising non stop and exhibiting remarkable strength. In last 7 trading sessions it has moved from 10800 to almost 11700 levels. ~900 points in 7 days with an average of 100+ points each day.

In last post we had mentioned that 11500 is the final hurdle for Bulls and if crossed will put markets firmly in the bullish trajectory. We had also advised traders ( who were on short side to keep 11500 as final SL for their short positions). Markets did close above 11500 yesterdays (which has also prompted us to change our medium term indicator back to 'Up' now) and now almost touched 11700 today.

Moving forward, we believe, now Markets are in a very positive and bullish zone. We had been saying that 11600 will eventually be taken out by markets & the way it has been taken out has surprised most but we were always expecting it. However now that we have closed above 11600 what next? lets see

Though bulls are appearing in hurry and market is rising non stop there is slight tiredness or loss of momentum appearing on the charts. Markets have been rising non stop for last 7 days and max we have seen markets going up is 9-10 days. Also we had posted a tweet yesterday stating how markets have posted 3 back to back 'gap up zones' and if we see another one in next 1-2 trading sessions then it might turn into 'exhaustion gap' ( i.e, a gap area which gets filled on later on). Today market opened with a gap but filled the gap area intraday however in the end it again moved up and closed above it. Going forward for next 2-3 sessions we need to see if markets manages to trade above this zone ( around 11550-575). Moving below this zone could indicate that markets wants to take a breather now ( surely it cant keep on running like this forever).

However that doesn't mean that one should create short positions below that, absolutely not. It will just be an indication to book profits, that's all. Now markets can take 'breather'  or 'halt' in many different ways. It may just get stuck around at same level (for ex 11500 or 11600) & not move at all for 1-2 week or it may give a sharp fall towards 11400 once again or it may turn choppy and volatile and start swinging wildly in a tight range (say between 11500-11700). This is just how market rests or takes a breather before it decides to move up again.

For any serious correction to develop Nifty needs to break below 11350 levels in next 3-4 trading sessions ( which is looking very unlikely for now) and till that happens, market remains in uptrend from both medium and short term perspective so keep that in mind before making your trading decisions( As far as our trading position is concerned, we had initiated long at 11370 levels last week).

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 (updated till 1st Oct).