Nifty presently is testing a stiff resistance zone. This resistance zone has acted as supply zone for the last 5 times and this is the sixth time it is testing it.
The first time it entered this zone on Oct 2007, kept consolidating and finally failed on Jan 2008 Second time in Jan 2018 - touched and got rejected Third time tried again on late Aug 2018 and failed on Sept 2018 Fourth time again on May 2019 and failed in July 2019 Last time it again entered this zone on Dec 2019 and finally failed on Jan 2020 [the massive fall - attributing to pandemic]
Interestingly - again it entered the same zone. Will it fail again ? or will it give a multi-year resistance zone breakout
What's different this time
Look at the strong bullish candles of the last 2 weeks. Shows a very heavy positive momentum
BNF still has unfinished business to touch its all-time highs
Global cues remain positive - the hope of vaccine, US elections
scenario A - if NIFTY opens GAP UP on Monday and sustains above the resistance zone for a week, we may see rally like never before
I would go Long with resistance as SL and target open.
scenario B - if NIFTY shows sign of weakness, I would wait till it re-test the resistance zone before falling
Happy Trading MSK
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A crucial day for Market tomorrow, if today's low is not taken out, we may see a 100-150 pts rally. I will play with this setup, rest we all know Market is supreme
GOOD ANALYSIS BUT THIS TIME BREAK-OUT POSSIBILITY IS MUCH MORE THAN FAILING. NEXT 2 YEARS US IS NOT GOING TO CHANGE RATES, EVERY COUNTRY IS PUMPING LIQUIDITY GIVING REASON OF COVID. INFLATION IS NOT THERE IN US & EUROPE. SO MONEY WILL FLOW IN EQUITY & GOLD/SILVER. NIFTY TARGET IN 6 MONTHS 14400/15500.
msk_analysis
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@ckirtane, Thanks and it looks like this rally is going to continue.
peacefulStar50178
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your analysis is perfect but expecting a short correction from here.. and then bullish..!!
Resistance is resistance it will respect it. But dont know how much time. Coz all resistance and supports are made to be broken... When retailers are mostly on the opposite side..
msk_analysis
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@HITSMAK, well said , i think the key is to be on the right side or at least try to be on right side
Tech_Milind
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Very well analyzed. My view is Nifty 17000 by March 21. Small correction may come in rally but every deep is buying opportunity. I am long. 👍👍👍