Nifty View: Outlook and Trend for 1st Mar 2019

Near Term Trend: ↓ Down 

Market update: Nifty Opened strong around 10850 levels but couldn't break free inspite of trying whole day and finally closed at 10790 levels, down 15 points.

A relatively calm expiry day was witnessed today ( especially considering the volatility we have been accustomed to seeing since last few days). Markets are looking a bit tired and 10850-10900 levels continue to pose a considerate amount of resistance to Nifty. It had taken 8 Days for Nifty to fall from 11118 levels to 10585 levels and now after 7 days we are still sitting at 10800 levels which is not even 50% retracement level. So unless Nifty makes a sharp comeback in next 2 days, there is a likelihood of Nifty testing 10600-650 levels again and try building a fresh up leg from there.

We have been saying that Nifty fall from 11118 levels to 10585 levels was slow and it didn't even have any momentum so theres a likelihood of a strong bounce ( sustainability and reach of the bounce was put under question). Now the rise are seeing from 10600 levels, seems to be even slower and erratic ( directionless) hence there is always a risk of market dropping (a bit)again  from here and probably try to start an up leg from there.

If you refer to  our wave counts ( posted couple of days back), we had mentioned that a triangle seems to be in progress, which was based on the fact that previous fall (marked as B leg) and the current upmove ( marked as C leg) are carrying same characteristics. Now it seems (probably) that C leg has matured and we are into D leg. It remains to be seen for how much time and how far D leg can continue. As per our past experience we have seen that D & E leg can sometimes finish very quickly (even intraday).

In nutshell, it seems markets are tired of moving in this small range of 10500-11000 and breakout seems imminent now. So traders who have been buying nifty at every 200 point dip and selling at every 200 point rise need to be a bit careful. There is no harm in doing such trades however now one needs to be extremely careful. If a trend breaks out on either side one is likely to be trapped. We would like to observe markets carefully for next 2-3 days and if its indeed moving like a triangle like we have been anticipating then there is a possibility of seeing lower levels from here.

Happy Trading!

Nifty View: Update for 28th Feb 2019

Near Term Trend: ↓ Down 

Market update: Nifty Opened strong and traded strong above 10900 however slipped suddenly and fell more than 150 points from days high and dropped to10760 levels. It finally closed with a small loss of around 30 points at 10800 levels.

Todays Opening was crucial, the way nifty opened and traded strong gave a signal that probably yesterdays sharp fall was just a bear trap & now Nifty once again ready to move up. Initial 1st hour of trade was pretty strong and usually (9/10 times) such trades results in very strong moves by market however today was an exception and the initial up move turned out to be a bull trap actually.

Once Nifty broke below 10840-10850 levels it became clear ( almost) that markets are not ready to move up and probably has opened a new leg on the downside. When we say downside we mean there is a real risk of testing 10600-10640 levels once again in near term and if 10600 gets broken this time then we are looking at much lower levels (10200-10300 or even lower).

Technically speaking, it seems C leg was done on the upside and D leg has started on the downside. Now it remains when and where this D leg ends and final E leg begins. (for wave counts ref my previous posts).

In terms of trading dynamics Diametric patterns are most difficult to trade and after diametric comes triangles. What we are seeing in this move after 10K levels ( from Oct lows) is a combination of Diametric and Triangle. Both these patterns combining together are giving an extremely tough time to traders. Reason they are tough to trade is because they are erratic and as per neo wave  they are virtually exception to every rule in the books.

Having said this, there is no reason to despise or hate triangles/Diametrics in spite of the fact that they are tough to trade and can cause a string of bad trades for one simple reason- The trend which follows once these patterns are complete is directional & pretty straight forward and if one has patience to remain invested he can easily reap the rewards later.
 

Nifty View: Update for 27th Feb 2019

Near Term Trend: ↓ Down 

Market update: Nifty Opened with a gap down of 50 odd points which stretched to 150 points due to geopolitical tensions but an immediate buying spree erased all the losses & even pushed Nifty in green momentarily. Nifty finally closed a loss of 45 points at 10835.

We had mentioned yesterday that even though Nifty has put on 4 days of gain & has crossed 10850 levels, the entire rise or up move is appearing slow and we need to wait for one more day to see if markets can add any gain over and above yesterdays close. Today market just crumpled in initial hours which of course is being attributed to geopolitical tensions however technicals were already pointing to another leg down ( ref to the wave counts posted in yesterdays post).

So what next? The fact that Nifty erased most of the losses today and closed just 40 odd points down will be seen as positive by many. However we are seeing it as failure by markets to close above previous day high and add any significant gains. In other words market remains in 'down trend' and need another strong push. Merely recovering from day low is not good enough, markets need to add point above previous day close.

Both Sensex & Nifty made a Doji candle today, Doji signifies indecisiveness. When markets crashed 150 points bulls knew they needed to support and pushed markets back up but once it reached yesterdays close point and started trading flat, they were clueless and lacked the strength to carry it forward. If it was a strong market then it should have  made a strong close today above 10900 levels.

Technically speaking, wave count remains same as posted yesterday and it remains to be seen if C leg has ended or still ongoing.

 In summary, todays recovery action by bulls is marked as an indecisive act by bulls where they managed to pull back from day lows but lacked the strength to take it forward (It can still be done tomorrow).Bulls needs to reassert themselves very strongly from here, they might have succeeded in pulling markets from disaster zone but that is not enough. They need to deliver more and deliver fast else wont be surprised to see bears taking control of the markets once again.


Jai Hind,Bravo to Indian armed forces & happy Trading to you!!



 

Nifty View: Update for 26th Feb 2019

Near Term Trend: ↓ Down 

Market update: Nifty opened almost flat (inspite of an overnight rally in US stocks and strong Asian markets) but recovered later and finally closed strong at 10880, up almost 90 points.

We had mentioned that 10800-10850 is a very key resistance zone for Nifty and if Nifty is able to cross it with momentum then probably we can see higher levels in Nifty. Nifty did cross it however the momentum was not very convincing (inspite of 90 points rally today). Ideally Nifty should have broken 10850 on Friday itself or in the first hour of trading today. So even though 10850 has been broken its not done convincingly ( as we would have liked to see) hence we are keeping the near term trend as down only, we need to see further strength in market tomorrow above these levels to change the trend to 'UP'.

At the time of writing this post, Dow future is up 160 points and SGX Nifty is trading strong, however its looking difficult that Nifty will be able to add any significant gain immediately from current levels simply because markets have turned overbought on short term charts so little bit of cooling off is expected.

The fall we saw from 11018 to 10585 though it was in one single line it was not very convincing now this rise which we are seeing from 10585 is carrying the same characteristics too and again is not very convincing ( specially the last 2 days). This could be on account of short covering, when Nifty had broken 10600 levels few days back many traders and brokerage houses had gone short but market reversed the very next day forcing traders to cover those short position. It will be interesting to see if market can see some followup buying once the short covering is out of way.

Having said this, the advance decline ratio continues to be positive running 4th day in a row which is a positive sign and PCR continue to be in favour of bulls.



Nifty

Technically speaking, Like we mentioned above that this rise is also carrying the same characteristics which we got to see in the previous fall. Such similarity is symptomatic and indicative of triangular movement. Tt seems since hitting the low of 10583 earlier this month ( which is marked as wave 'X') markets are making a triangle which is currently in 'C' leg & this pattern can continue till the pending 2 more legs D & E finishes too  (but keep in mind D& E leg can be pretty small and finish quickly).

B leg retraced almost 100% of the A leg and now C leg has retraced almost 50% of the B leg. We need to see if this C leg ends here and D legs open up again.

 Happy Trading!

Nifty View: Update for 25th Feb 2019

Near Term Trend: ↓ Down 

Market update: Nifty opened flat , traded flat and closed flat.

Even thought market didn't move much ( infact didn't move at all) but the fact that it held the gains of previous days, continue to point in the direction that probably the down move is done for the time being. However not all is lost for Bears yet. Markets have still closed below the extremely crucial zone of 10800-10850 which should keep the bears morale high going into the weekend.

For bearish trend to resume we need a strong fall below 10700 levels now and on the contrary if bulls manage to push markets a little more from here and sustain it then probably we can see this upmove stretching a bit more from here.

What is heartening  to see is the consistent positive breadth of the markets. 3rd day running the advance decline ratio was positive (34:16). Participation across the board has been good which is something missing from the markets for quite a while. However it will take just 1 bad day to put things back where they started from.

So for now we will keep the trend as 'Down' only but we are probably one just one more nudge away from changing it to "UP" but no point in anticipating it and we will believe it when we see it. For now refrain from taking positions at current prices and like we have been saying, let markets show signs of weakness ( if you want to create shorts) which are still not visible or wait for 10800-850 to be taken out if you want to go long. Current level is basically a no-mans land and such flat trading today indicates only one thing. Markets are creating a base/pad to launch its next move.

Technically we continue to be inside this complex corrective however like we said in previous post, there are plenty of indications which are telling that not much time remaining for it to be over.

We keep guiding and advising our subscribers through regular intraday whatsapp updates as to what needs to be done during trading hours. If you wish to subscribe to our live whatsapp Nifty calls/trading recommendation then you may subscribe using below link:

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Nifty View: Update for 22nd Feb 2019

Near Term Trend: ↓ Down 

Market update: Nifty opened cautiously almost at par and kept rising steadily up. It even crossed 10800 levels momentarily and then dipped slightly but again recovered and closed at 10790 levels (up 60 points).

Today was the second consecutive day where Nifty closed above its a previous day high and not only the previous day, market even closed above the high of last 3 days. Last 3 days fall has been retraced in 75% of time which is very fast indeed & is a strong bullish indications. However it still can not be concluded that Nifty has started a new leg on the upside But yes chances have increased that markets can open a new leg on the upside ( but we still need to know for sure).

Nifty has crucial resistance and very critical resistance sitting at 10790-10830 range and today markets closed bang at this critical level. 10790-10830 ( give or take 20-25 points) is a every key pivot point and will probably decide the near term trend for the markets. If markets can overcome and sustain these levels then chances of markets moving up and testing 11K+ levels will increase further.

We mentioned yesterday that the current pull back can continue till 10800 at least, that was the logical target of this pullback, and if its indeed a pullback then we should see a sharp reversal from this zone and on the other hand continuous up move above these levels might indicate that bottom is done for near term. Advance decline ratio continue to be positive at 36:14 for second day in a row.

We had also mentioned that even though near term remains down, it is not a market to create fresh shorts and one should wait for pullback to come first and short only when the pullback start fizzling out. Till today there is no sign that this pull pack is losing any steam and markets are rock steady but of course things can change tomorrow and we see weakness tomorrow then it might indicate that the down trend is continuing in the market for now.

In summary, watch the next couple of trading session carefully, weakness from here will indicate that markets are probably going to test lower levels again  and further strength will probably indicate that bottom is done for time being ( in which case it will be a double bottom at 10585). So one may plan his trading strategies keeping these things in mind.

We keep guiding and advising our subscribers through regular intraday whatsapp updates as to what needs to be done during trading hours. If you wish to subscribe to our live whatsapp Nifty calls/trading recommendation then you may subscribe using below link:

http://niftywaveindia.blogspot.com/2019/02/join-us-on-whatsapp-how-to-subscribe.html


You may follow us on Twitter: Nifty Trend @Niftytarget  

Nifty View: Update for 21st Feb 2019

Near Term Trend: ↓ Down 

Market update: Nifty opened strong at 10650 levels today and kept trading between 650-700 levels before short covering propelled it to 10750 levels in last hour and it closed at 10635 up 130 points.

We had mentioned yesterday that Markets are continuously falling since last 8-9 days and it has come dangerously close to giving a strong bounce and today we saw that. There was no rocket science technical analysis involved there and any one could have made out that markets are oversold and one sharp bounce can come anytime. So no surprises here.

Now that we have seen the expected bounce, what next? the real test begins now for the market. It will be interesting to see if markets have it in them to continue the momentum going forward. What is heartening to see is the broad based rally we got to see today. Advance : Decline ratio stood at 44:6 today and we are not sure after how many days market have seen such a good participation across board. Volumes were good too today (higher than last 2 days). As per our analysis market has strong resistance at 10800-10850 zone and this rally may continue till 10800 atleast. But keep in mind if its driven by short covering then it wont last long and soon the downtrend will begin.

For now we will keep the trend as 'down' only. Like we usually say, one day rally in a downtrend doesn't mean anything and doesn't change much. However if markets keep building on strength from here and keep exhibiting strength even over 10850-10900 levels then once again it can touch higher levels ( 11k+).

We mentioned yesterday that even though the trend remains down its not a right market to create shorts. One should wait for the bounce to come and create shorts only when it start fizzling out. Now that the bounce has come one should watch it for some more time and once it starts weakening or fizzling out then only create shorts. But keep in mind if it start spending too much time over 10800 levels then probably its getting ready to test higher levels ( in which case only longs are recommended).

We keep guiding and advising our subscribers through regular intraday whatsapp updates as to what needs to be done during trading hours. If you wish to subscribe to our live whatsapp Nifty calls/trading recommendation then you may subscribe using below link:

http://niftywaveindia.blogspot.com/2019/02/join-us-on-whatsapp-how-to-subscribe.html


You may follow us on Twitter: Nifty Trend @Niftytarget 



Happy Trading!