It’s been a terrific week for the bulls!
Markets pushed through the previous intermediate highs and made a new top at 11938, just shy of the psychologically important level of 12000.
I had published the following weekly chart of Nifty in my 28/09/2020 issue of the Daily Trading Plan. What do you see?
![](https://mlapl2auja99.i.optimole.com/w:1024/h:564/q:mauto/f:best/https://tradingwithdyr.com/wp-content/uploads/2020/10/nifty-4.png)
Well, one thing is very clear from the chart is that we have respected the trend channel, 100 week MA, and made a higher high.
Now, when markets are making higher highs and higher lows, does that in any way suggest a downtrend? I think not!
![](https://mlapl2auja99.i.optimole.com/w:1024/h:564/q:mauto/f:best/https://tradingwithdyr.com/wp-content/uploads/2020/10/nifty-short-term.png)
On a short-term basis, the Nifty is highly overbought and faces a significant resistance between 12012-12071 where there’s an unfilled gap!
The intermediate trend is clearly up but we may go through a short-term pause or pullback from overbought conditions!
What’s the Nifty Bank Suggesting?
![](https://mlapl2auja99.i.optimole.com/w:1024/h:564/q:eco/f:best/https://tradingwithdyr.com/wp-content/uploads/2020/10/bnf-3.png)
Nifty Bank has performed very well during the past two weeks!
Here are my observations on Nifty Bank…
- On a weekly chart, if the Nifty Bank succeeds to move above 24000, the rally can continue towards 26000 where there is upper trendline resistance, 200 Week MA and an unfilled gap.
- On a short-term basis, it is overbought at its 200 DMA and any pullback towards 23000 could be a buying opportunity.
The outlook remains cautiously bullish!
Have a great week ahead!
P.S:
I have already updated the performance of my portfolio yesterday. Do check it out in case you haven’t already!