Nifty Trading Analysis: Key Insights for 15/10/2020

Introduction

In the previous trading update, we discussed the trading plan for 15/09/2020 regarding Nifty's performance. Today, we will analyze the current market conditions for Nifty as of 15/10/2020, including trading strategies, technical indicators, and market trends. This analysis is intended for educational purposes only and should not be considered as a buy or sell recommendation.

Nifty Trading Summary for 13/10/2020

On 13/10/2020, Nifty demonstrated its ongoing uptrend for the eighth consecutive session. The market had a gap down opening at 11917 and closed at 11971.05, gaining 36.55 points, or 0.31%. The SENSEX closed at 40794.74, gaining 169.23 points, or 0.42%. Meanwhile, BANKNIFTY outperformed the indexes by gaining 382.45 points, or 1.63%, closing at 23874.65.

Technical Analysis of Nifty

The charts indicate a bullish pattern for Nifty. The trading range is expected to be between 11720 and 12130. In case of weakness, Nifty could potentially reach 11660. However, any downturn presents an opportunity to enter. For newcomers, opening positions should be made above 11940 for the next targets of 11990.

Technical Highlights

Key Resistance: 12095 Technical Support: 11850 Previous Resistance: 11940 (Potential for sharp gain with targets of 11995) Previous Support: 11810 (If Nifty breaks below, it can slide to 11660)

Market Breadth and Indicators

Market breadth remains negative, with more declining stocks than advancing ones. India Vix, which measures market volatility, is also overbought along with the markets. These indicators suggest a potential pullback, possibly up to 11580-11600.

Trading Strategy for 15/10/2020

Based on the technical analysis, the key points to consider for Nifty trading on 15/10/2020 are:

Maintain existing positions as long as Nifty holds above 11810. Any weakness below this level should not be ignored. Enter additional positions above 11940 for potential gains up to 11990. Be prepared for a potential pullback to support levels around 11660. Monitor the 200-day moving average (MA) for BANKNIFTY. A close below 24000 could indicate a bearish outlook.

Traders should use stop-loss orders to protect against potential losses.

Conclusion

The market dynamics on 15/10/2020 suggest a continuation of the uptrend in Nifty. Traders should approach the market with caution, considering the potential for short-term corrections while looking for entry points as the market fluctuates.

Disclaimer: This document is for educational purposes only. Do not consider it as a buy or sell recommendation.