Near Term Trend: ↔ (sideways)
Market update: Nifty opened with a slight gap down at 10750 levels and dropped sub 10700 levels intraday trading before closing at 10737 levels down 60 points.
10750 has been a formidable support for nifty and today Nifty broke it and even the contraction channel was broken on the downside still we have changed the near term trend to 'sideways' from 'down'. Lack of impulse or momentum in the current fall is raising question if its indeed the start of a fresh downmove or just a corrective move (which is extending time wise and price wise)
From trading perspective we decided to cover our remaining shorts around 10700 levels in the morning. There were many traders who went short today once the 10750 level was broken ( and market gave a breakout below the contraction range) thinking downmove has started. However for a downmove to begin there has to be an impulse which is clearly missing since last few days. Thats the reason we decided to exit. But it still doesn't mean that Nifty is turning bullish and should immediately go long. Market can still fall from here in next few days but the chances of same have reduced a bit for the time being.
So for now we need to watch Nifty movement closely for next few days and then see in which direction to trade. If we feel strength is returning to markets then we wont hesitate from taking a long position. As per our view, nifty should have seen the start of a downmove trend by now but since its still stuck in a range and that could mean one more leg on the upside is pending.
Technically speaking, we are still in a complex corrective and all we are saying is that probably Nifty will spend some more time in the correction zone before the actual downmove actually begins. So lets see how Nifty behaves in next 2-3 trading sessions we will accordingly see what needs to be done.
Trading Recommendation: We exited our balance short position @10700 levels and currently have no open positions. Like mentioned above we need to observe markets for few trading session to decide what needs to be done.
Happy Trading to you!
Market update: Nifty opened with a slight gap down at 10750 levels and dropped sub 10700 levels intraday trading before closing at 10737 levels down 60 points.
10750 has been a formidable support for nifty and today Nifty broke it and even the contraction channel was broken on the downside still we have changed the near term trend to 'sideways' from 'down'. Lack of impulse or momentum in the current fall is raising question if its indeed the start of a fresh downmove or just a corrective move (which is extending time wise and price wise)
From trading perspective we decided to cover our remaining shorts around 10700 levels in the morning. There were many traders who went short today once the 10750 level was broken ( and market gave a breakout below the contraction range) thinking downmove has started. However for a downmove to begin there has to be an impulse which is clearly missing since last few days. Thats the reason we decided to exit. But it still doesn't mean that Nifty is turning bullish and should immediately go long. Market can still fall from here in next few days but the chances of same have reduced a bit for the time being.
So for now we need to watch Nifty movement closely for next few days and then see in which direction to trade. If we feel strength is returning to markets then we wont hesitate from taking a long position. As per our view, nifty should have seen the start of a downmove trend by now but since its still stuck in a range and that could mean one more leg on the upside is pending.
Technically speaking, we are still in a complex corrective and all we are saying is that probably Nifty will spend some more time in the correction zone before the actual downmove actually begins. So lets see how Nifty behaves in next 2-3 trading sessions we will accordingly see what needs to be done.
Trading Recommendation: We exited our balance short position @10700 levels and currently have no open positions. Like mentioned above we need to observe markets for few trading session to decide what needs to be done.
Happy Trading to you!
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