Wednesday, November 21, 2018

Nifty View: Update for 22nd Nov 2018

Market Update

Nifty closed around 10600 ( down 0.5% for the day). Some more weakness was expected in Nifty once it broke below 10690 levels yesterday and that's precisely the reason we decided to book profit and exited around 10685.

From technical perspective there is no change in the wave counts ( you may refer my yesterdays post for the charts and wave counts). Nifty is falling but so far the impulse seems to be missing. Surely it can fall more from here and that's the reason we are waiting on sidelines for a better entry point. I would still go with my preferred scenario and keep a close eye on the current fall. Wherever and whenever it matures will try to enter again. If I feel its starting a new impulsive leg downward then might initiate short positions (chances of that happening seems less as of now but with markets you have to keep all the options open at all the times). Next week is expiry week and expect lots of volatility in Nifty now. So its extremely important that you enter at right point else you will find tough to manage your position and the choppiness is likely to give you lots of heart attacks.

Falling crude and recovering INR is good news for bulls but worsening global cues and high VIX (19.5) is acting as the headwind.

Trading recommendations: We exited our long positions yesterday around 10685 and Nifty is already 100 points below our exit point. For now I would suggest wait and watch policy. No fresh longs are advised here however if someone is short in Nifty then he can hold the same with a SL of 10660 levels.




 

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