Daily Trading Plan: 13/10/2020.

Bulls continue to march on albeit at a slower pace!

Nifty after opening gap up, went on to make a high at 12022, retrieved from there and made a low at 11867.2 before finally closing at 11930.95.

Here are my observations looking at the daily chart of Nifty…

  1. Nifty hit a crucial resistance zone between 12012.55 -12071.45 where there’s an unfilled gap.
  2. Although Nifty closed up, the closing was lower than the open which is a bearish candle.
  3. Nifty is overbought both in terms of price and a short-term oscillator. It has closed up for eight days straight while it has been showing overbought readings for the last seven days.
  4. Market breadth remains negative where there are more declining stocks than advancing.
  5. The strange thing to observe is the India Vix is also overbought along with the markets.

All of the above points are suggesting a pullback, may be upto around 11580-1600.

How’s the Nifty Bank doing?

Nifty Bank is flirting its 200 day MA with a negative close today below the average. It must cross 24000 to continues its bullish trend upto 26000. Before that a pullback upto 23000 is not ruled out!

The outlook remains cautiously bullish!

There are no signals as per my Swing Trading Strategy!

Have a great day ahead!

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