Sunday, 19 January 2020

Nifty Spot Outlook for 20th Jan

In the previous session : 

Nifty went down by 34 points then went up by 29 points before closing lower by 3 points on Friday as compared to the previous day's close.

Nifty made a life time high of 12389.05 on 16th January and now it needs to give a strong close above its congestion zone of 12300 - 12375 for the upward momentum to continue else we can again see some profit booking and short selling from these levels . Today again Nifty failed to give a close above 12375.

  • As per levels given for 17th Jan, Nifty traded between our long and short trigger levels without giving a trade on either side indicating indecisiveness. Bank Nifty is in divergence to the moves in the Nifty as this week we can expect them to get aligned with either one catching up with the other.  
  • In the coming session one need to watch Bank Nifty if it holds above the previous weeks low and bounces to expect a sharp upmove else we may see Nifty not being able to sustain at higher levels. 

For 20th Jan  :

Sustaining above 12375 enter for 12390 - 12410 - 12455

Sustaining below 12330 enter for 12315 - 12295 - 12250

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 ." , and has Nifty confirmed longs and we can should a move till 12445 - 12480. 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.   

  • 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 . 

  • Now Nifty has to give a strong close above 12375 for the upward momentum to continue else we can again see some selling pressure. 

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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.

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