Near Term Trend: ↓ (Down)
Market update: Nifty opened at par and as the trend has been recently, failed to add any points above the opening price but at the same time support came when Nifty turned lower and touched 10740 levels. Market finally closed at 10795 levels down 25 points.
Bulls are supporting market whenever market turns lower and 10740-10750 area has turned out to be a formidable support for Nifty. Please note its in line with our view that market is in 'contraction' mode and support area is moving up and up ( 10340 /10530/10630 now 10740). Similarly the resistance area is also coming down. Bulls are supporting Nifty at every drop but at the same time failing to take Nifty higher above the opening prices.
Overall it was again a lackluster day of trading where Nifty didn't make any kind of move and volatility was missing. This calmness in the market is probably just the silence before the actual storm comes. One should keep light position and trade with a strict stop loss. Divergence continues between Bank Nifty and Nifty and key oscillators still suggesting that Nifty remains in a down trend. Nifty made a lower low today and made a closing below yesterdays low which is definitely a weak sign. However markets have a tendency to bounce back after 2 bear candles (today was the 2nd bear candle on intraday chart). So we need to observe markets for signs of strength in the next 1-2 trading session.
Technically speaking- diametric is still in formation, prices remain in contraction mode and trading range is getting shorter and shorter everyday. Going forward it will not be easy to trade as there is every likelihood that this contraction will first see a 'false breakout' first to suck in the traders. So pls don't get carried away after seeing a sudden spike out of this range, observe the markets and then only take a trading call.
Trading Recommendation: We exited our one part short today @10810 levels (initiated at 10840)now just carrying one part. Still don't suggest going long at this stage. For now one should carefully observe the markets and then only take a trading call. Like I said volatility can increase anytime trapping you on wrong side so pls be very careful. If you must trade then trade with a strict stop loss.
Have Nice weekend!
Market update: Nifty opened at par and as the trend has been recently, failed to add any points above the opening price but at the same time support came when Nifty turned lower and touched 10740 levels. Market finally closed at 10795 levels down 25 points.
Bulls are supporting market whenever market turns lower and 10740-10750 area has turned out to be a formidable support for Nifty. Please note its in line with our view that market is in 'contraction' mode and support area is moving up and up ( 10340 /10530/10630 now 10740). Similarly the resistance area is also coming down. Bulls are supporting Nifty at every drop but at the same time failing to take Nifty higher above the opening prices.
Overall it was again a lackluster day of trading where Nifty didn't make any kind of move and volatility was missing. This calmness in the market is probably just the silence before the actual storm comes. One should keep light position and trade with a strict stop loss. Divergence continues between Bank Nifty and Nifty and key oscillators still suggesting that Nifty remains in a down trend. Nifty made a lower low today and made a closing below yesterdays low which is definitely a weak sign. However markets have a tendency to bounce back after 2 bear candles (today was the 2nd bear candle on intraday chart). So we need to observe markets for signs of strength in the next 1-2 trading session.
Technically speaking- diametric is still in formation, prices remain in contraction mode and trading range is getting shorter and shorter everyday. Going forward it will not be easy to trade as there is every likelihood that this contraction will first see a 'false breakout' first to suck in the traders. So pls don't get carried away after seeing a sudden spike out of this range, observe the markets and then only take a trading call.
Trading Recommendation: We exited our one part short today @10810 levels (initiated at 10840)now just carrying one part. Still don't suggest going long at this stage. For now one should carefully observe the markets and then only take a trading call. Like I said volatility can increase anytime trapping you on wrong side so pls be very careful. If you must trade then trade with a strict stop loss.
Have Nice weekend!
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