Medium Term Trend: ↑UP (Changes to down below 11275)
Black Friday: After a panic Monday, Nifty has followed up with another bad session and lost 200 points to close at 11330 levels.
"markets are not out of woods yet and Nifty needs to further move above 11575-11600 levels to signal start of a a fresh uptrend"
Now any one can go and check yesterdays high. Markets have turned back exactly from this range and in the process might have sucked gullible buyers. What we saw today was a classic bear action. Suck in buyers and then open with a gap down so that no one is able to exit and fresh shorts are avoided as well ( not many would dare to short market after it opens with a gap of 150 points).
On weekly charts Nifty has posted a "bearish engulfing pattern" which is a negative sign and after seeing todays opening, its highly likely that market near term trend has changed down but we would like to see a close below 11275 levels just to be totally sure. So if somepoe is still stuck in long then he may use 11275 as final SL. Dont carry any trading long below this zone (closing basis).
So in summary, todays fall has opened up possibility of a larger degree correction in Nifty ( though we need a close below 11275 to further confirm that). Long position should have been exited once Nifty broke below 11575-600 levels on Monday, however if someone is still stuck then 11275 should be last SL for him. Further weakness below 11275 could invite larger selling hence short positions with proper SL and hedge can be initiated.
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