Market Update: Big day today for Nifty, it traded strong through out the day (aided with short covering) and closed around 10740 levels ( up 190 points). So what can we expect going forward after last 5-7 days of wild swings and gap down/gap ups? For starters let me make it clear that these wild swings are just a way or method by which market get rid of 'weak hands' or 'speculators' or 'undecided traders' who simply trade basis their gut feeling or the news flow. Usually such moves are seen just before when markets are about to give a trending move in either direction ( A cleaning act is required before such a move can take place).
Trend going forward remains indecisive, the bullish scenario I was holding for Nifty was changed when it broke below 10650 but even then I was not bearish and still even after a rally of almost 400 points in last two days I have not turned bullish. Market made one important high today ( 10750). This entire range of 10650-10750 is extremely critical, if nifty can consistently trade above 10750 (todays high) then we can expect the rally to continue and I might turn bullish again. However if this not broken then we can expect a retesting of 10300 levels ( even 10K below that) pretty soon. So sit tight market is going to move big but to ride that movement you need to be patient.
As a smart trader one should not try to trade these wild moves its almost impossible to trade Nifty when you have 100-150 points in either direction so its always better to sit out and wait for market to remove the froth ( shaking up is required to generate and remove froth). Like I said in my previous posts too, the broader trend will remain in one direction these swings will come and go. One should not give too much importance to them and definitely shouldn't try to trade them.
I have not been able to post my wave counts yet ( as it needs some more validation) but will do so real soon.
Trading recommendations: No open position and I don't recommend getting into one just yet. Movement we are seeing could be due to unwinding and short covering by speculators. But we should be getting a trading opportunity pretty soon ( whenever there is one, will try to update the same live here).
Trend going forward remains indecisive, the bullish scenario I was holding for Nifty was changed when it broke below 10650 but even then I was not bearish and still even after a rally of almost 400 points in last two days I have not turned bullish. Market made one important high today ( 10750). This entire range of 10650-10750 is extremely critical, if nifty can consistently trade above 10750 (todays high) then we can expect the rally to continue and I might turn bullish again. However if this not broken then we can expect a retesting of 10300 levels ( even 10K below that) pretty soon. So sit tight market is going to move big but to ride that movement you need to be patient.
As a smart trader one should not try to trade these wild moves its almost impossible to trade Nifty when you have 100-150 points in either direction so its always better to sit out and wait for market to remove the froth ( shaking up is required to generate and remove froth). Like I said in my previous posts too, the broader trend will remain in one direction these swings will come and go. One should not give too much importance to them and definitely shouldn't try to trade them.
I have not been able to post my wave counts yet ( as it needs some more validation) but will do so real soon.
Trading recommendations: No open position and I don't recommend getting into one just yet. Movement we are seeing could be due to unwinding and short covering by speculators. But we should be getting a trading opportunity pretty soon ( whenever there is one, will try to update the same live here).
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