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

Medium Term Trend:  ☝UP (Changes to Down below 11450)

Approaching 11900: After a brute fall on Thursday and losing about 300 points, Nifty stabilized a little and has managed to add about 200 points in last couple of days.

In previous post we had mentioned "holding todays low and moving above 11900 levels would be positive for Nifty."

Nifty indeed managed to protect thursdays low of 11660 and today almost broke above 11900. Though Nifty has not broken above 11900 decisively but the way Nifty traded traded throughtout the day is indicating toward break of this area in coming session. Above 11900 there is one more resistance zone at 11940-11965 levels if that level is crossed then its highly likely that markets are headed towards much higher levels from here.


Market are in a bullish zone and even when markets fell to 11670 we had said that holding 11670 will be +ve for markets and even if it breaks then max we can go to 11500. based on current chart reading, levels below 11500 are not looking probable as of now. Eventually we do expect markets to break above 12K levels and head towards 12300-400 and if Nifty manages to move above 11965 in next 1-2 sessions then its likely that we see such move in oct expiry itself.


If some one is still short in markets then 11965 should be the final SL for him. If Nifty trades for 15-20 min above 11965 then it wont be wise to carry short positions. On the downside if Nifty has to move lower, then it needs to break below 11670 in next couple of trading sessions. Breaking below 11670 could push Nifty towards 11500 however if Nifty remains strong then the chances are that breakout will happen on the upside.

Happy Trading

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