Near Term Trend: ↓ (Down)
Market Update: Nifty opened slightly in positive territory around 10770 levels but couldn't keep up with selling pressure and succumbed to sub 10700 levels even touched 10650 levels before closing at 10663 (down 80 points). This is the third consecutive day for Nifty where it has posted a lower low and a lower high. Continuous trading below yesterdays day low and the way 10700 has been breached shows that markets trend has now changed to Down. I had mentioned in my previous post that if Nifty start trading below 10700 then all overall trend of market will be change do down and all longs should be exited.
We had initiated shorts around 10860 levels on Friday and have added more shorts today around 10685 levels in second trade. Both trades are still open and will be maintained with a trailing SL
Coming back to Nifty, like we have been saying that entire move from 10K to 10750 is looking like a corrective move. And thing about corrective moves is they end without a warning and when they do its not a pleasant sight for those who believed it to be a trending move.
Overall probably Nifty has taken a U turn now and the corrective move which I have been projecting as a '7 legged diametric' is over and what we are seeing now is a new impulse downward ( Wave-1 of new impulse). we need more evidence and need to observe market carefully for next few days to see if its indeed a new impulsive move which has started downwards. For now Nifty has reacted exactly from where we predicted G wave to end so currently we assume that its over and impulse has begun( unless proven otherwise by market).
There was lot of resilience being shown by Nifty in last few weeks where it was just shrugging off the losses in US markets and was simply marching on. However such Inter market divergence cannot continue for long ( it can last for months though) and sooner or later all market aligns to each other. Going forward we might see Dow recovering and adding on few points( as technically it appears oversold) but Nifty struggling to do that.
Trading recommendation: 2 trades open on short side. 10858 on Friday and 10684 today. Don't leverage excessively short term bounce can come anytime causing panic and wiping out your profits. For now just hold on to your shorts. If someone is long then its time to exit.
Wish you a Merry Christmas and a Happy New Year!
Market Update: Nifty opened slightly in positive territory around 10770 levels but couldn't keep up with selling pressure and succumbed to sub 10700 levels even touched 10650 levels before closing at 10663 (down 80 points). This is the third consecutive day for Nifty where it has posted a lower low and a lower high. Continuous trading below yesterdays day low and the way 10700 has been breached shows that markets trend has now changed to Down. I had mentioned in my previous post that if Nifty start trading below 10700 then all overall trend of market will be change do down and all longs should be exited.
We had initiated shorts around 10860 levels on Friday and have added more shorts today around 10685 levels in second trade. Both trades are still open and will be maintained with a trailing SL
Coming back to Nifty, like we have been saying that entire move from 10K to 10750 is looking like a corrective move. And thing about corrective moves is they end without a warning and when they do its not a pleasant sight for those who believed it to be a trending move.
Overall probably Nifty has taken a U turn now and the corrective move which I have been projecting as a '7 legged diametric' is over and what we are seeing now is a new impulse downward ( Wave-1 of new impulse). we need more evidence and need to observe market carefully for next few days to see if its indeed a new impulsive move which has started downwards. For now Nifty has reacted exactly from where we predicted G wave to end so currently we assume that its over and impulse has begun( unless proven otherwise by market).
There was lot of resilience being shown by Nifty in last few weeks where it was just shrugging off the losses in US markets and was simply marching on. However such Inter market divergence cannot continue for long ( it can last for months though) and sooner or later all market aligns to each other. Going forward we might see Dow recovering and adding on few points( as technically it appears oversold) but Nifty struggling to do that.
Trading recommendation: 2 trades open on short side. 10858 on Friday and 10684 today. Don't leverage excessively short term bounce can come anytime causing panic and wiping out your profits. For now just hold on to your shorts. If someone is long then its time to exit.
Wish you a Merry Christmas and a Happy New Year!
I carried my positions from friday and turns out to be jackpot today. Added two more lot today, considering global weakness and volatile markets I am with you on your analysis and Nifty seems to be in bear zone as of now. Let see what happen next. Happy trading . .
ReplyDeleteThank you.. Enjoy profits
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