Nifty Scales to 20,000; No Hurdle Left Till ATH!

  • Stock Market Analysis

In the previous analysis, I was more focused on the hurdle at 19,850 which was keeping the index from rising further. There were a couple of intraday attempts to breach this resistance but the demand was not strong enough, leading to a failure of these attempts.

Yesterday, the Nifty 50 index finally closed above this resistance for the first time after September 2023. This was the last major hurdle on the way to an all-time high and the follow-up rally to the 20,000 mark in today’s session is a good indication of continued momentum.

Now, firstly, there are no short opportunities forming as of now because the RSI (daily,14) hasn’t become overbought yet. The current reading of 68 is almost close to the benchmark level of 70 but if looked at in an objective manner, traders might be better off if they wait for a further stretch before attempting for a mean reversion trade.

For trend followers, the direction is clearly upwards and the previous high of 20,222 is in the vicinity and in my opinion, traders might see a new high first before a noticeable correction. Hence, bulls still have the upper hand as the last resistance is now out of the way.

However, one major uncertainty that everyone needs to keep in mind is the assembly election results of 5 states which will be announced on 3 December 2023. Therefore, on Monday next week, we might see some good volatility and maybe a trend reversal as it will be quite an important day as market participants will digest the election outcome.

To demonstrate this rising volatility, India VIX has already risen 10% this week so far.

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X (formerly, Twitter) - aayushxkhanna

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  • cadsolution structure @cadsolution structure
    ayush khanna sir, waiting for your next stock suggestions.. pls 🙏 update..
    Like 3
  • Hemant Na @Hemant Na
    Hi Aayush, can you please tell me the fair value of Tanla platforms limited ?
    Like 0
    • Suyog Tamboli @Suyog Tamboli
      its around 600/650
      Like 0
    • saurabh mishra @saurabh mishra
      Ayush Sir, awaiting next stock analysis
      Like 0
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      100
  • ps narayanan @ps narayanan
    now with SEBI ms buch and others suddenly talking about f&o turnover at 200 300 times of cash could well be better taken as a waring by poor individual retailers of coming volatility
    Like 1
  • samsul Haque @samsul Haque
    Thank you sir
    Like 0
  • amman rais @amman rais
    Sir opinion poll will get announced on 30th Nov, if favoured Congress might not move to ATH. Instead we may see some corrections even before 3rd Nov
    Like 1
  • SM Vali @SM Vali
    thank you sir
    Like 0
  • Feroz Saudagar @Feroz Saudagar
    👍
    Like 0
  • rajesh singh @rajesh singh
    Thanks for the info..
    Like 0
  • Mannish kakka @Mannish kakka
    your long term view on polyplex corporation
    Like 1

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