What's next for Nifty?

On 19th Nov 2020, Nifty's weekly expiry happened at 12771.70 (-1.29%) which was below crucial support of 12800. Nifty closed in red after 11 days of bullish rally which could possibly provide a much needed correction in the markets. As per 15 min chart of nifty for today's trading session, nifty opened with gap down followed by uptrend where it made days high at 12963 and consolidated for couple of hours. The second half witnessed selling with lower highs and lows made. This selling pressure broke opening level of 12830 which resulted in further downfall and closing of the index at 12771 which was near lower band of bollinger bands and with RSI 34.55 which indicates weakness after 11 days of uptrend.

The question is - Will there be consolidation or correction?

The answer to this question lies in tomorrows opening. There are two possible situations. First, if nifty opens gap up above 12830 and sustains for sometime then further upside till 12950 can be observed. As per today's trading session, it is clear that the range of 12950-13000 will act as a resistance zone and further upside will be only possible if it crosses this zone. Secondly, if the opening is gap down or flat then there could be more downside as profit booking will take place. Crucial support remains at 12650 followed by 12250.

If tomorrow nifty manages to close above 12830 then there are chances of consolidation between the range of 12830-12960 or else we would witness a much awaited correction in markets. Nifty gained almost 12% since the beginning of November 2020. With monthly expiry on the cards, there could be more volatility in upcoming days.

Happy Trading!!

Disclaimer: I'm not a SEBI registered advisor. Do your own research before investing or trading.