Learner_

NIFTY - at inflection point

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
MSK






Comment: 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

Comments

GOOD ANALYSIS BUT THIS TIME BREAK-OUT POSSIBILITY IS MUCH MORE THAN FAILING. NEXT 2 YEARS US IS NOT GOING TO CHANGE RATES, EVERY COUNTRY IS PUMPING LIQUIDITY GIVING REASON OF COVID. INFLATION IS NOT THERE IN US & EUROPE. SO MONEY WILL FLOW IN EQUITY & GOLD/SILVER. NIFTY TARGET IN 6 MONTHS 14400/15500.
+7 Reply
Learner_ ckirtane
@ckirtane, Thanks and it looks like this rally is going to continue.
Reply
your analysis is perfect but expecting a short correction from here.. and then bullish..!!
+1 Reply
Good analysis
+1 Reply
Learner_ analystkumar
@analystkumar, Thanks
Reply
Very detailed Analysis...
Reply
@m2gud, Thanks
Reply
Resistance is resistance it will respect it. But dont know how much time. Coz all resistance and supports are made to be broken... When retailers are mostly on the opposite side..
Reply
Learner_ HITSMAK
@HITSMAK, well said , i think the key is to be on the right side or at least try to be on right side
Reply
Very well analyzed. My view is Nifty 17000 by March 21. Small correction may come in rally but every deep is buying opportunity. I am long. 👍👍👍
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out