Nifty reached our projected target zone of 23500-23600, as discussed in yesterday’s post. As mentioned, the possibility of a significant rebound remains strong.  On the downside, 23000 acts as strong support, a 45-degree trendline drawn from the September high. Typically, such strong support holds on the first attempt.”

Therefore, we anticipate a bounce as long as 23000 holds. In the near term, we no longer hold a bearish outlook, at least for the next few days.”

We’ll see. If Nifty starts to sustain below 23000, then next targets are much lower. However, for now, let’s not dwell on that bearish scenario. We are no longer interested in continuing with shorts.”

In fact, once Nifty starts to sustain above 23700, we would be looking for a rally towards 24100 and 24400 on the spot index during the next few days.”

Until early December, the Nifty 50 index is primarily driven by price action, as specific cycle dates aren’t indicated on the TIME front.”

For NIFTY, the 8th and 11th of November were major cycle dates. As discussed earlier, both these dates were significant for the near-term trend. Holding above the intraday lows of both these dates, we can expect a flattish kind of trade for this week. Only a daily close below both these dates’ lows would trigger a fresh leg of sharp decline.”

On the price front, 24,100 was a critical support. A break of that has eliminated the possibility of a bottom formation at 23,816. So, further lower lows are certainly due. At best, we can get a higher high above 24,537, but that too won’t signal a broader trend shift.”

Yesterday, NIFTY tested the 24,510 resistance level but was unable to sustain the momentum. As long as the index remains below this level, it suggests that the recent rebound may have peaked.” On downside The 24,100 level is a crucial support level. If this level is breached, a retest of the 23,800 and 23,600 levels could be on the cards in the coming days.” Given the current market conditions, high volatility is expected. It’s advisable to exercise caution in your trading decisions.”

NIFTY is experiencing the anticipated rebound, which began on Monday. This upward momentum is likely to persist for a few more days, provided the spot price remains above the 23,800-24,000 range. Resistance levels are at 24,510 and 24,800.”

Significant cycle dates for NIFTY are due on November 8th and 11th. Expect a strong price reaction around these dates.

Once this rebound ends we would expect further lower lows on NIFTY and overall market.”

U.S. Markets: A Post-Election Outlook.”

Regardless of current futures trends, we still anticipate lower lows for the S&P 500 once the election euphoria subsides and the FOMC meeting concludes. The next major cycle dates for U.S. markets are November 11th and 14th.”

What may seem insignificant now could make a lot of sense in next few weeks.”