Nifty Analysis

In this assessment I will try to answer a few questions:

1️⃣where is the market trading?

It is trading near its all-time high 18887.60



2️⃣How it is behaving near this resistance?

🚩It reacted sharply from near the resistance level but took support near a previous swing low of 18670.

🚩Then it rallied even much sharper back to the resistance and this time the reactions have been not that strong.

🚩It seems consolidating/absorbing whatever supply is left near the highs.



3️⃣Is there any pattern or range that can be traded?

🚩Yes, there is a triangle pattern formation as shown in the chart. It is probably best to buy near the lower edge and wait for an up move.

🚩There could also be a range formation in which market can oscillate for a while. This range is between 18780 (an important support-resistance level) and 18875-18900.



4️⃣Is there any chance of massive crack from all-time highs?

🚩At this point of time I don’t see any indication of a fall. As I said that the reactions are getting smaller, and price is hugging the resistance zone. There are higher chances of a breakout in the direction of primary trend on the weekly timeframe (see chart on the right).



5️⃣What should be the trailing SL to protect gains in the market?

🚩The swing low of 18660 could be a good stop loss to protect or lock the gains (if any) in the markets.


Do like🚀 share 🔊 or comment 📃 for more such ideas in future.

Disclaimer: The views shared above are not a trading or investment advice. You need to apply your due diligence before investing your capital.

Comment:

As the triangle pattern failed to sustain the price up, it got converted into a range specified in the description above. Price action is very different from the 19th June to 20th June lows. Today the fall had legs and it developed a range. Still some accumulation near 18780 zone holding the price.
A weaker scenario would be that: Below 18780 zone we can expect another swing back to 18670.

Comment:

As per the weak scenario, Nifty is back to the 18670 support. Wise men saying is that never sell at support. On intraday basis, one may look for a buying opportunity at support.

Comment:

Unless and until there is a decisive break in either direction (up or down) we will keep rotating in the range shown above.

Comment:

This would be the last update of this post.
Nifty didn't break on the downside but on the upside. It had a sluggish break of the support 18660 but then it formed a wedge there and broke on the upside.
The momentum is strong with gaps at the open and its breaking to all time highs. Sustaining above 18900 means up trend tends to resume. Keeping stops to lock gains would be a good idea as market is full of surprises :)