Medium Term Trend: 👇Down (Changes to up above 15200)
Nifty @ 14550 Down 265 points : Exhibiting Weakness!
Market still continues to move in a range and after a couple of days of posting solid gains and testing 14900 levels, its fallen more than 250 points to close at 14550 levels today. In one of the previous post (Early march) we had mentioned that "this range bound trade has consumed around 15-17 trading sessions but historically we have seen that such moves can continue for 30-40 trading sessions (entire March probably)". Now today Nifty has consumed around 27 trading session so this move might be nearing maturity now but can still continue for few more days.
Overall we continue to believe that Nifty is in a sideways trade zone ( with a negative bias) and once this consolidation gets over market may move in a strong trend on the upside. Markets have been falling every second day after moving up for 1-2 days hence when the breakout comes it wont be easy to trade as traders would have lost conviction by then ( many bulls have lost conviction already and seeing every move up with a suspicion and that's what market wants.
Having said this if we continue to see weakness below 14550-30 tomorrow then we can fall a little more towards 14300 and range can be extended but its been 27 days and even today (after falling for 250 points) we are still only 6% down from all time high. This is not a bearish move & this is not how trending move on the downside plays out. There is a clear lack of impulse which is suggesting that its not a strong downtrend.
From trading perspective one should wait for a clear break out and then only add long position. On the upside 14900-920 levels has strong resistance now and once crossed should push Nifty towards 15200 easily.
Happy Trading
To Join our Nifty algo buy/sell whatsapp message service during market hours, pls click⤇ Nifty Buy/Sell Algorithm or whatsapp @ 9319321906
To see our recent trading calls for Nifty Algo- Pls click ⤇ Past Trade summary (updated till 12th Mar).
