Nifty Tomorrow: Prediction, outlook and Trend for 12th Jan 2021

Medium Term Trend:  ☝UP (Changes to Down below 13700)

Nifty @ 14485 up 135 : Continues to Soar

In the previous update we had discussed how few technical parameters are pointing towards a possible fatigue creeping up in market however at the same time we had also mentioned if Nifty manages to move above 14250-14300 levels then its likely that its headed higher towards 14700 levels.

Nifty opened with a gapup on Friday itself (protected the crucial support area of 14100 levels) and made a move above 14250 levels which attracted fresh buying. Buoyed by renewed buying interest and  short covering, Nifty has now moved almost to 14500 levels.Going by the way Nifty is moving, it will be foolish to call any area a top area and from traders perspective it makes sense to trade only on the long side with trailing stoploss.

We are not sure after how long we are seeing such a strong markets. Last time such brutal strength (that's the only word we can find) was seen, was way back in 2005-2007. at that time market was in a very strong bull run and it seems theres a even stronger bull run taking place now.

There are still few traders and analysts who are seeing this upmove just as a corrective move and expecting markets to fall back towards 8-10K levels. That's wishful thinking I must say. Ofcourse corrections are part of this game and will keep on coming from time to time but expecting markets to retest March 2020 low is not a wise thing to do.

Levels wise, Fridays open area of ~14250-300 is important from short term perspective and Nifty should find some support at this level in the event of any fall. 

Happy Trading

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