Near Term Trend: ↔️ (Sideways/Corrective/Near maturing)
Market Update: Market opened with a gap up and maintained the positive trend throughout the day and closed 60 points up at 10967 levels. Nifty today crossed the 10950 levels and made a new high. Still that doesn't change the overall character of the market and it remains a corrective leg. All up moves from 10K levels are carrying same characteristics and are pretty slow. Surely it can carry on for few more days but going forward Nifty might face strong resistance around 11000-11150 levels ( which is also near the 61.8% of the total retracement). Technically speaking market can even retrace as much as 80% ( since the fall from 11750 to 10k was a double corrective).
Nifty might change trend tomorrow or might take few more days but the overall scenario and near term direction remains same. If my Diametric assumption is right then Nifty should turn back from these levels as both price and time wise the last (G) leg seems to be complete. Further rise in Nifty from these level would mean something else is cooking up. For now we are on the look out for a reversal point to short Nifty at appropriate level. I don't see much headroom for Nifty to go up from here but still we need to wait for a reversal point. However If we don't get a reversal point then we will wait.
Thing which are favoring Bulls right now are a) lower VIX and b) put call ratio ( its totally in favour of bulls right now) and c) shorts which got trapped at lower levels on negative election news.
Having said this, I still see very little value in going long at this stage but that does not mean Nifty can not rise 200-300 points from here surely it can but still we prefer to wait.
Trading recommendation: No longs or no shorts at CMP. Wait for reversal signs to go short. As per my wave counts top could be in formation let markets validate or negate the pattern first.
Market Update: Market opened with a gap up and maintained the positive trend throughout the day and closed 60 points up at 10967 levels. Nifty today crossed the 10950 levels and made a new high. Still that doesn't change the overall character of the market and it remains a corrective leg. All up moves from 10K levels are carrying same characteristics and are pretty slow. Surely it can carry on for few more days but going forward Nifty might face strong resistance around 11000-11150 levels ( which is also near the 61.8% of the total retracement). Technically speaking market can even retrace as much as 80% ( since the fall from 11750 to 10k was a double corrective).
Nifty might change trend tomorrow or might take few more days but the overall scenario and near term direction remains same. If my Diametric assumption is right then Nifty should turn back from these levels as both price and time wise the last (G) leg seems to be complete. Further rise in Nifty from these level would mean something else is cooking up. For now we are on the look out for a reversal point to short Nifty at appropriate level. I don't see much headroom for Nifty to go up from here but still we need to wait for a reversal point. However If we don't get a reversal point then we will wait.
Thing which are favoring Bulls right now are a) lower VIX and b) put call ratio ( its totally in favour of bulls right now) and c) shorts which got trapped at lower levels on negative election news.
Having said this, I still see very little value in going long at this stage but that does not mean Nifty can not rise 200-300 points from here surely it can but still we prefer to wait.
Trading recommendation: No longs or no shorts at CMP. Wait for reversal signs to go short. As per my wave counts top could be in formation let markets validate or negate the pattern first.
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