05 Jan ’24 —Nifty50 takes support at the trendline

Nifty Analysis - Stance Neutral ➡️

Recap from yesterday: “The first thing we had to do was to change the stance from bearish to neutral. To go bullish we need some more momentum, if it comes up in the forenoon session — I will update you via TV minds.”

4mts chart link
Two things happened today

1. A gap-up open - which did not make any sense.
   
2. The rejection from the trend line - that made every sense.
   

We repeated this earlier - our markets may be the only one that frequently opens gap-up or gap-down. The bulk of the action happens outside of the trading hours - seems like we need to grow up & mature. Today’s gap-up did not make any sense, even the opening candle. By 10.35 we lost the steam and started falling. Took a minor pause at 11.15 and then by 13.55 we went underwater.
We got a nice rejection right at the trend line between 14.15 to 14.31. We are quite sure that many traders would have thought we might be falling further and that's when the reversal came. It was so intuitive to watch Nifty50 take support at the trendline and retrace the fall. Finally, we ended the day with a gain of 0.24%

63mts chart link
Our stance is still neutral with equal possibilities in either direction. Since Nifty50 is following the ascending channel’s top trend line - the chances of going up look more probable. To go down - we need news flow/event as there is no technical weakness.