Market weekly update
Currently market is facing stiff resistance @ 10690 levels which is also the 200 day EMA. Its good that market is consolidating just below this crucial level, there are many signs suggesting that this level would break eventually and nifty will see higher levels around 10750 probably 10800. However there are chances that once these levels are achieved we could see another dip towards 10500 and 10400 ( even lower).
It will be interesting to see how nifty behaves after achieving 10750 levels. If it can hold these levels for few days then we are heading towards 11000 levels as there are still few shorts in the system and market could see a wave of short covering if 10700 is breached. Technically speaking market seems to be making a double corrective since the top of 11750 and the second corrective is probably developing like an extracting triangle ( we are currently D leg of it and E leg downward is still pending). A bullish extracting triangle extracts the power of bears and transfer it to bulls (this is precisely what is happening in market right now). I need further evidence to confirm if its actually a extracting triangle and for now its just a possibility ( a strong one though).
Trading recommendations:We are currently Long on nifty ( initiated around 10500) and part profit booking was done today around 10680 levels. I do not recommend going long or short at current levels those having existing long positions can continue to hold it with a SL of 10595. Those sitting out needs to wait for a better opportunity so don't make a forced entry at CMP.
Currently market is facing stiff resistance @ 10690 levels which is also the 200 day EMA. Its good that market is consolidating just below this crucial level, there are many signs suggesting that this level would break eventually and nifty will see higher levels around 10750 probably 10800. However there are chances that once these levels are achieved we could see another dip towards 10500 and 10400 ( even lower).
It will be interesting to see how nifty behaves after achieving 10750 levels. If it can hold these levels for few days then we are heading towards 11000 levels as there are still few shorts in the system and market could see a wave of short covering if 10700 is breached. Technically speaking market seems to be making a double corrective since the top of 11750 and the second corrective is probably developing like an extracting triangle ( we are currently D leg of it and E leg downward is still pending). A bullish extracting triangle extracts the power of bears and transfer it to bulls (this is precisely what is happening in market right now). I need further evidence to confirm if its actually a extracting triangle and for now its just a possibility ( a strong one though).
Trading recommendations:We are currently Long on nifty ( initiated around 10500) and part profit booking was done today around 10680 levels. I do not recommend going long or short at current levels those having existing long positions can continue to hold it with a SL of 10595. Those sitting out needs to wait for a better opportunity so don't make a forced entry at CMP.
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