Medium Term Trend: ⇊Down (Changes to UP above 11550)
Nifty Bounces Back: After falling for 6 consecutive days, Nifty finally managed to show some recovery and closed above 11K levels on Friday.
In last post (when Nifty had closed at 11250 levels)we had mentioned that "its very risky to continue holding the long positions and it seems there is still plenty of steam left in this downmove and we can still fall further from here hence be careful. Stay away from entering long positions and try to sell on rise ( with proper SL of course)"
Nifty moved on expected lines and lost more than 450 points from11250 levels. Now after falling relentlessly we have seen some sort of bouce however it too early to predict if the bottom is done. In next few sessions Nifty needs to make a move above 11275-11325 levels (which was the previous breakdown point) to have realistic chances of resuming uptrend.
Overall we are bullish on markets and like we mention in one of our previous post, we expect Nifty to take out 11600-11700 levels eventually. However it may or may not happen in a straight line and its possible nifty spends some more time from short and medium terms perspective in bearish territory and fall some more.October series is big series (time wise) and its likely to have many ups and down hence be wary of the volatility.
In summary, Friday's bounce could be due to oversold position and till we see strength returning above 11275-11300 levels there is always a chance of market falling again and retesting recent lows hence one need to be be careful.
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