NIFTY - at inflection point

msk_analysis Updated   
NSE:NIFTY   Nifty 50 Index
Nifty presently is testing a stiff resistance zone. This resistance zone has acted as supply zone for the last 5 times and this is the sixth time it is testing it.

The first time it entered this zone on Oct 2007, kept consolidating and finally failed on Jan 2008
Second time in Jan 2018 - touched and got rejected
Third time tried again on late Aug 2018 and failed on Sept 2018
Fourth time again on May 2019 and failed in July 2019
Last time it again entered this zone on Dec 2019 and finally failed on Jan 2020

Interestingly - again it entered the same zone. Will it fail again ? or will it give a multi-year resistance zone breakout

What's different this time
  • Look at the strong bullish candles of the last 2 weeks. Shows a very heavy positive momentum
  • BNF still has unfinished business to touch its all-time highs
  • Global cues remain positive - the hope of vaccine, US elections

scenario A - if NIFTY opens GAP UP on Monday and sustains above the resistance zone for a week, we may see rally like never before

I would go Long with resistance as SL and target open.

scenario B - if NIFTY shows sign of weakness, I would wait till it re-test the resistance zone before falling

Happy Trading

A crucial day for Market tomorrow, if today's low is not taken out, we may see a 100-150 pts rally. I will play with this setup, rest we all know Market is supreme


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