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Nifty - From this point is 30% more Upside Remains before Deepawali festival?

Updated: Oct 20, 2021

Below is the Nifty Hourly Chart

If Nifty sustains above the level of 18,200-18,250, the positive momentum continues, leading to an upside projection till 18,550-18,600 level. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.

On the other hand, the recent gap area of 18248 – 18197 will provide a cushion in the case of any minor degree dip.

Below is the Nifty Daily Chart.

The daily chart is showing a runaway gap, which underscores the underlying strength. The same is visible from the momentum indicators as well. Hence the index is expected to stay on the upward trajectory with the short-term target at 18500-18700-18800 and 19000 respectively.

Nifty Weekly Chart

In the coming week, the domestic market awaits the release of quarterly earnings to determine the market trend.

Banking will be the key sector under focus in the coming days as the sector is set to kickstart its earnings season.

With the expectation of a strong recovery in corporate earnings, the Indian market is positioned to continue its bull run. However, any deviation from market expectation may lead to short-term correction in the respective segments.

Nifty Monthly Chart View:

The immediate support for Nifty is coming near 18,250 followed by 18,170 zones any dip near mentioned support zone will be again fresh buying opportunity for the overall targets of the 18500 zone, the immediate hurdle is coming near 18,400-18,500 zone around mentioned resistance one can lock their long gains.

On the technical front, Nifty witnessed a continuous positive trend after sustaining well above 18,200 levels. According to our technical analysis, this positive momentum might continue to 18,500 levels in the coming sessions. Immediate support for Nifty 50 is 18,200.

Rising to a fresh record high supported by the positive cues. in the last week, BSE Sensex rose 1,246.89 points (2.07 percent) to close at 61,305.95, while the Nifty50 rose 443.3 points (2.47 percent) to close at 18,338.5 levels. The broader indices - BSE Midcap and Smallcap indices added 3.3 and 2 percent, respectively.

In the case of benchmark Nifty, it has already rallied nearly 900 points this month and hence there is a strong possibility of temporary weakness.

We are of the view that 18200 could be the trend decider level for positional traders and above the same, the uptrend formation will continue up to 18500-18750 levels."

Expectations for next week:

Be prepared for both sides of the trades. A correction can bring down Nifty to 18248, which is the level of buy on dips of the first level of buying. Here Nifty can go maximum up to 18050.

But if Nifty started to sustain below 18050. it could touch the level of 17970, where again we have an opportunity to buy on dips of the second level of buying.

But be cautious for all long trades with strict stop loss, if Nifty breaks down the level of 17970, in this case, it could down sharply from 17500 to 17400 immediately.

In case of continuity of its bullish trend if Nifty sustains above 18200, Nifty will go up to next 30 percent from the current level roughly from 18300 to 18800.

so ready for both sides of trades. these targets are on weekly basis and a good positional strategy in options can fetch a good return with the proper hedging strategy.

Thanks for reading.

Happy Trading

Keep Investing


Neeraj Bhatia

Managing Director

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