Indian Stock Market Forecast 2020

Market To Remain Rangebound, Initiate Short Only If Nifty Closes Below 8954

Last Trading Session: Indian Stock Market opened positive. We predicted that BankNifty has entered into negative zone whereas Nifty is still in positive zone. We also suggested traders to go short only if Nifty closes below 8954. Indian Stock Market moved negative but recovered sharply.

Indian Stock Market would open flat with negative bias. Technically, BankNifty is still in negative zone whereas Nifty is still in positive zone. Now, two cases are possible and traders would have to wait for either of the two to happen. Nifty would enter into negative zone if it closes below 8954 and if that happens then market would fell down sharply in upcoming days. Whereas BankNifty would enter into positive zone once it closes above 20529 and if that happens then market would see sharp positive rally, which seems unlikely for now. Now BankNifty and Nifty both needs to move in the same trend by breaching either of the reversal levels to confirm the direction of the market. This is time to wait for confirmation and once the trend is confirmed then one can trade in that direction.