Nifty at new highs….. but have you noticed this!

Nifty registered an new life time high last week. The weekly chart above indicates a probable cup & handle formation target set at 12300. The weekly RSI is strong and is well above the bullish zone. A divergence is noticed in the “BXTRENDER” indicator, this divergence displays the scarcity of breadth on Nifty.

While on the daily chart (below) we noticed Nifty gaped up and maintained its run on Friday.

We need to ascertain whether this a is break away gap or a exhaustion gap? Watch this gap analysis video here.  The range of the candle formed on 26th July should be added to the high of 27th July’s candle. If Nifty is able to sustain above the range i.e., 11370 levels, then we can consider this gap as a break away gap and expect Nifty to continue up in bullish mode, and the weekly cup & handle target of 12300 may not be far from reality, but if it fails to sustain Nifty may falter of time being. 11120 is a very strong support zone.

Let’s Connect:


The information on this trading dairy represents my own opinions & does not contain a recommendation for any particular security or investment. I may hold positions or other interests in securities mentioned in the dairy.

Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. You must review customer account agreement prior to establishing an account. Investors could lose more than their initial investment. You must review customer account agreement prior to establishing an account.

Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Trade on your own risk. Bharat Jhunjhunwala or ProRSI will not be liable for any type of damage evolving out of the trades taken by you.

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

ProRSI is a premium trading mentorship program which helps you trade profitably

+91 9748173333

Mon - Sat 9.30 - 19.00

Sunday closed