Market Update
As expected Nifty opened around 10720 levels and kept consolidated around same level before making a late charge toward 10760 levels. I had mentioned in my post yesterday that 10750-10800 is likely & 10750-10850 is a big resistance zone for Nifty. During September 10850 kept providing support to Nifty and then finally after testing this level 2-3 times Nifty opened with a gap down (10760). So on daily chart we have a gap between 10850-10750 which is still not filled. If Nifty can close above this gap then we are heading towards 11K+ levels again but it wont be easy. Like I mentioned in my previous post that it will be critical to see what Nifty does at 10750-10800 levels. If nifty keep consolidating & grinding around 10600-10800 levels then most probably its preparing itself for a sharp rise towards 11K levels again.
However there is a small probability that entire rise from 10200 levels is a A-B-C (irregular) correction and Nifty is in currently in its C leg. If this scenario is correct then we can see a sharp dip towards 10K levels again but chances of that happening seems low right now ( but with market we have to be prepared for all possibilities).
I had also mentioned in my previous post that nifty probably is making a extracting triangle ( in second corrective) and is in D leg. However now it seems that D leg was done around 10600 & E leg was done around 10450. so we have to keep this probability in mind too.
To Summarize, keep a close watch on Nifty now, consolidation around these levels ( including minor dip) will be a good news for bulls. However steep fall might indicate that sub 10k levels can be seen.
Trading recommendation: We initiated long around 10500 and part profit was booked around 10680 & now the balance position is being held with a stop loss of 10690. I do not recommend going long or short at current levels. Existing longs can be maintained with the stop loss mentioned above. Once SL hits, exit and wait for next trade ( long or short). We as a trader do not have to trade daily.
As expected Nifty opened around 10720 levels and kept consolidated around same level before making a late charge toward 10760 levels. I had mentioned in my post yesterday that 10750-10800 is likely & 10750-10850 is a big resistance zone for Nifty. During September 10850 kept providing support to Nifty and then finally after testing this level 2-3 times Nifty opened with a gap down (10760). So on daily chart we have a gap between 10850-10750 which is still not filled. If Nifty can close above this gap then we are heading towards 11K+ levels again but it wont be easy. Like I mentioned in my previous post that it will be critical to see what Nifty does at 10750-10800 levels. If nifty keep consolidating & grinding around 10600-10800 levels then most probably its preparing itself for a sharp rise towards 11K levels again.
However there is a small probability that entire rise from 10200 levels is a A-B-C (irregular) correction and Nifty is in currently in its C leg. If this scenario is correct then we can see a sharp dip towards 10K levels again but chances of that happening seems low right now ( but with market we have to be prepared for all possibilities).
I had also mentioned in my previous post that nifty probably is making a extracting triangle ( in second corrective) and is in D leg. However now it seems that D leg was done around 10600 & E leg was done around 10450. so we have to keep this probability in mind too.
To Summarize, keep a close watch on Nifty now, consolidation around these levels ( including minor dip) will be a good news for bulls. However steep fall might indicate that sub 10k levels can be seen.
Trading recommendation: We initiated long around 10500 and part profit was booked around 10680 & now the balance position is being held with a stop loss of 10690. I do not recommend going long or short at current levels. Existing longs can be maintained with the stop loss mentioned above. Once SL hits, exit and wait for next trade ( long or short). We as a trader do not have to trade daily.
Nice analysis, seems quite logical
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