Updated on 11 Jan 2020

Nifty Daily Chart

1. Nifty found a bottom on August 23, 2019, at 10700 on news of Withdrawal of FPI surcharge tax. It rallied to 11100. But then rally fizzled out and Nifty pulled back to 10700 by 19th September 2019

2. Nifty got massive bullish boost on September 20, 2019, when the Govt stunned the market with massive Corporate tax cut. This time it was a BIG BULLISH Candle that changed the market sentiment for good. In 2 days the Nifty rallied to 11700 [it was a 1000 point rally] before the market once again pulled back

3. Nifty again pulled back this time to retest 11100 as support, level which earlier acted as minor resistance. On October 09 – Nifty bounced from 11100 and a new support point was pinned on the chart. Nifty very quickly rallied from 11100 to 12100+ new high

4. With Nifty now at new high, the market started building BULLISH base to go higher. This time the base building seems to be happening at 11800.

5. The Nifty continues to climb higher and trading sideways now with minor resistance at 12300.

THE BIG PICTURE MESSAGE

The structure of the market has turned decisively bullish with traders inclined to buy every bad news/dip and the Nifty has a solid line of support at 11800 for now, and the market is more inclined to go high than down

Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers