Monday, 20 January 2020

Nifty Spot Outlook 21st Jan

In the previous session : 

Nifty went up by 78 points then went down by 135 points before closing lower by 128 points on Monday as compared to the previous day's close.

Nifty made a life time high of 12430.50 on 20th January and again failed to give a strong close above its congestion zone of 12300 - 12375 for the upward momentum to continue and we saw a correction towards 12200 levels . 

  • As per levels given for 20th Jan, Nifty opened at 12430 which was also its high and reversed to trigger our short trade and completed all targets giving 115 points . Bank Nifty was in divergence to the moves in the Nifty and we were expecting them to get aligned with either one catching up with the other and today we saw Nifty moving down .   

For 21st Jan  :

Sustaining above 12255 enter for 12275 - 12295 - 12355

Sustaining below 12195 enter for 12175 - 12155 - 12095

How to use these levels 

  • Enter on sustaining above/below the levels mentioned and look to book partly/fully once at the 2nd target as its placed at the resistance / support . Re-enter if price sustains above / below the 2nd target with a trailing stoploss of the entry levels. 

For this month :

  • As mentioned previously " Nifty longs will get confirmed with a consecutive close above 12305 for a initial target of 12445 - 12480 and sustaining / closing above 12480 we can see a further move till 12600 - 12735 .  The only concern is that Bank Nifty is lagging behind and needs to catch up in the coming session and close the divergence else Nifty can halt and correct to catch up with Bank Nifty before moving up again.  ", and Nifty had confirmed its longs and today we saw a high of 12430 nearly completing our targets . Post that we saw a good correction due to the divergence as cautioned .

  • Nifty shorts will get confirmed with a consecutive close below 12035 for  a initial target of 11895 - 11855 and sustaining / closing below 11855 we can see a further move till 11735 - 11600 . 

  • Also as mentioned " Now Nifty has to give a strong close above 12375 for the upward momentum to continue else we can again see some selling pressure. " , Nifty failed to give a close above 12375 inspite of breaking above it a few times and we saw a correction.

Join our Telegram Channel "simplytradestocks" for live stock trading ideas during market hours                                      

To receive this post daily in your inbox, kindly register by adding your email id in  the 'Subscribe to my posts' section on the top right side of the blog.

Disclaimer : These are my personal views and one should do their own research before entering any trades based on them  . The use of the blog is agreement that the blog is for informational and educational purposes only and does not constitute advice in any form in the furtherance of any trade or trading decisions.

No comments:

Post a Comment