Near Term Trend: ↔️ (Sideways/Corrective/Near maturing)
Market Update: Nifty opened with a gap down on the back of overnight fall in US equities and weak Asian markets but as the trend has been recently, Nifty outperformed each market and closed almost at par.
I have been expecting Nifty to make a near term top around this level and hence went short in the morning (10AM) around 10932 levels (Nifty did fall to around 10880 levels after that) but overall movement of Nifty was not as per expectations so we exited from shorts at almost same price around 3pm. Even though our SL was a 'new high' and it was not triggered still a strong trading above opening rates suggested a bullish overtone. In such cases its always best to exit.
Nifty has still not given any negative crossover signal and remain very much in +ve trend. However and as per my view and analysis there is probability that a top could be made around this area either now or in next 2-3 days so we have to be on look out for a trading opportunity on the short side.
For now Nifty has neither validated nor rejected my diametric assumption so there is still a likelihood of Nifty reversing from these levels, however if reversal has to come then it should come soon now else we are looking at extending this correction (both price wise and time wise).
Even though Nifty covered almost all the losses intraday, it made a lower low and a lower high today which is an encouraging sign for Bears. Nifty now needs to close strongly above 10985 levels to negate the negative impact.
Another thing Favoring Bears is that Dow and S&P have broken their Feb lows already, so not sure if this outperformance by Nifty can continue for long. May be not today and may not tomorrow but soon both indices are likely to catchup ( Either Dow gives a strong rally or Nifty start falling)
Trading Recommendation: Entered short around 10932 and exited almost at par. Need more sign of weakness to continue staying with short positions.
Market Update: Nifty opened with a gap down on the back of overnight fall in US equities and weak Asian markets but as the trend has been recently, Nifty outperformed each market and closed almost at par.
I have been expecting Nifty to make a near term top around this level and hence went short in the morning (10AM) around 10932 levels (Nifty did fall to around 10880 levels after that) but overall movement of Nifty was not as per expectations so we exited from shorts at almost same price around 3pm. Even though our SL was a 'new high' and it was not triggered still a strong trading above opening rates suggested a bullish overtone. In such cases its always best to exit.
Nifty has still not given any negative crossover signal and remain very much in +ve trend. However and as per my view and analysis there is probability that a top could be made around this area either now or in next 2-3 days so we have to be on look out for a trading opportunity on the short side.
For now Nifty has neither validated nor rejected my diametric assumption so there is still a likelihood of Nifty reversing from these levels, however if reversal has to come then it should come soon now else we are looking at extending this correction (both price wise and time wise).
Even though Nifty covered almost all the losses intraday, it made a lower low and a lower high today which is an encouraging sign for Bears. Nifty now needs to close strongly above 10985 levels to negate the negative impact.
Another thing Favoring Bears is that Dow and S&P have broken their Feb lows already, so not sure if this outperformance by Nifty can continue for long. May be not today and may not tomorrow but soon both indices are likely to catchup ( Either Dow gives a strong rally or Nifty start falling)
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| Nifty Daily Chart |
Trading Recommendation: Entered short around 10932 and exited almost at par. Need more sign of weakness to continue staying with short positions.
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