It looks like the market is ready for some short-term marathon, but before that, it has to give us some more confirmations, till now market is just range bound between 500-750, but now it is respecting some lower levels, there is one big resistance at 10775.
How to confirm and take the trade?
- Have to fill a big gap.
- Formation of new HH-HL
- Have to close above 10775.
Here in the above chart nifty facing resistance at 775-850, if it fills this gap then easily it can reach above 11k levels, there are multiple resistance at 775-850 that’s why last week market took a U-turn from 10775.
Generally, many FNO stocks follow the movement of Nifty and many stocks are near the breakout zone, once Nifty closes above 775-80 then they will rally also. 
Here in the above chart, we are getting HH-HL formation, this is bullish setup and if it doesn’t break the levels then it will keep moving in between previous HH-HL i.e. 10460-10775. Once it crosses and closes above 10775 then minimum it has to rally 150 points, and then we will get our target of 11k.
In the above chart it has to open and close above the red line then it will push the price to above 11k levels.
Conclusion: Support at 10450 Resistance 10775, a close below/above it will give 150-200 points downside/upside levels respectively. In all the above patterns, Gap is the biggest worry, once it fills that gap then above levels of 11k will be there easily.
6 Comments
Hi Divish,
Nice to see you on other social platform…I wish you all the luck n best wishes for your futures..Keep Helping us always…
Yes will be there always 🙂
Hi,
Forgive my poor knowledge, but what is the gap that you are talking about? Is it the gap up and gap down of pre market (prior to market opening)?
See gap up means market opening up as per compare to the previous close, and gap down means market opening down as compared to the previous closing, here Gap means range of 10850-10775,where there is no trading, that is very important to fill for further rally in market
Which stocks follow nifty can give
any 2 or 3 stocks example
Sir, That’s all about Index Management, sometimes BANK moves up IT come down, sometimes PHARMA moves up and BANK goes down, these is how Index is managed.