Market Update
After hitting a high of 10765 levels Nifty began its descent today. I had mentioned in my previous posts that Nifty might start a retreat from 10750-800 levels and it would be interesting to see how Nifty behaves after hitting 10750+ levels.
Like I mentioned in yesterdays post too, there is a big gap at 10750-850 levels and it wont be easy for nifty to fill it. We exited our balance longs today at 10685 levels once the SL was hit.
Technically next few days are going to be interesting and nifty will try and set itself (for its next big move which might take it towards either 11K or all the way down to sub 10K levels. Now we don't have any open positions and will be going to observe the Nifty movement for next couple of days before entering again.
See the chart below. this is my preferred scenario. Seems like D is done today and E leg is opened downwards and Nifty should start its upmove again once the E leg is done.
Alternatively, this is a possibility too where Nifty is just completed a ABC correction and is about to start a wave 2 of impulse down now.
So I will just repeat what I have said in my previous posts. Important to see how nifty behaves in next few days and accordingly we will decide our next trading strategy in few days ( next wave could be a big move from here).
Trading Recommendations: We exited our longs today around 10685 (initiated around 10500). I don't recommend going long/short at current levels and would advice wait and watch policy for next few days.We have already made a profit of around 180+ points so it wouldn't hurt to wait a little. However, if someone went short today then he can hold it with a SL of 10740. Fresh long positions are advised only above 10750 now.
This is a great analysis. Let's wait n watch, where to enter again
ReplyDeleteReally a helpful trend study
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