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Is Party Over for Nifty Bulls or Still More to Go?


#NIFTY index settled at 9859.90 up by 306.55 points on Thursday. It was a trading holiday in India on Friday but #SGX_NIFTY witnessed good decline on Friday that will cause a gap down opening in domestic markets today.
On Friday nifty successfully tested its 50 days SMA that stands near 9836. Now areas of 9800 will remain crucial to watch out in next few days. If market consistently holds above 9840 zones then we will see this index retesting areas of 10100-10700 zones. A death cross between 50 and 200 days SMA has already taken place during the month of March 2020 and it has been observed in past when a down trend is triggered by a death cross it can last up 8 months 16 months easily. Market is already up by 31% and further upside from these levels seems less likely but still if index manages to hold above 9840 consistently then one must be ready for a retest to 10100-10600 zones. Areas of 10700-10800 will remain a crucial turning point.
Crucial support is placed at 9300-9250 zones, retest to these levels can’t be ruled out and seems likely but stability below 9250 needed to confirm any deeper correction towards 8900-8600 zones.
Over-all we are in a down trend and currently stuck in a bullish leg which is a bounce back against a decline and further upside from these levels seems limited whereas any bearish trigger from crucial resistance areas will help bears to get back in control. This view is likely to remain valid for next 2-4 months.  

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Praveen Jangra said…
Thank you sir for this valuable information.
May 4, 2020 at 8:57 AM
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