Near Term Trend: ↔ (sideways with a positive bias)
Market update: Nifty opened slightly positive above 10900 levels but could not sustain above it. Whole day it traded in a narrow range between 10880-10925 and closed almost flat.
As per our views ( and like we have been saying since last few days) there is every likelihood or possibility for one more leg up in Nifty. We have seen too much congestion at 10900 range and it needs to be shaken up before market can resume its main trend. After a solid run of 150+ points yesterday the consolidation around 10900 level is a welcome sign for bulls. Even though Nifty didn't break above 10925 it didn't break down either.
I am not suggesting that worst is behind us and everyone should start buying and building portfolio. No, not at all. Overall there is no change in main trend of Nifty and its just that for a near term perspective there is a possibility of Nifty moving up.That is the reason we exited shorts @10700 and gone long above 10800 levels. Lot of people asking me we were selling Nifty earlier when it was around 10900 and now we are buying. Well that's market for you, we will always do what charts tell us to do (off course we can be wrong at times) but as a positional trader we have to buy when there is a possibility of a move up and sell when there is a possibility of a down move, levels be damned.
I am not sure of up side targets but levels above 11K are a possibility even 11200-11300 can be seen. It will be difficult for nifty to go any higher than that but it can definitely go, no one should doubt it. It has not been an easy market to trade since last 2 months and I don't think it will be any easier to trade it in near term. You need lot of conviction and discipline to trade the present structure which is shaping up in Nifty.Falling INR/USD and fragile global markets continues to pose a threat to Bulls.
Now coming back to technical, there is no change in my view. Nifty is still making a diametric pattern in a diamond shape however only change I am anticipating now is that its not going to be a 'G' failure and probably G leg is going to go post a new high. I was expecting G leg to finish around 10925 earlier but it seems F leg got subdivided so the pattern still continues ( extension and subdivision are very much possible in a diametric). Please note Nifty can terminate G leg below 10985 levels itself or even go as far as 11300 levels ( In my opinion second scenario is most likely but you never know).
Trading recommendation: No change in trading position, same as yesterday. Still holding our longs. Don't recommend going short at current levels and one should wait a little bit if he wants to short Nifty however if one is already short then he should exit at CMP or keep a tight SL of 10990 levels.If you have a small risk appetite and trading basis just your gut feel then you should sit out for some time and wait for picture to become clear first. When we initiate a trade we ensure trade is properly managed and we keep updating all our subscribers at every stage during trading hours as to what needs to be done.
Imp thing: After Friday (18th jan), we will not be posting our trading details and trading recommendations ( entry exit points) here as we are turning paid and our trade recommendations will exclusively be reserved for our paid subscribers ( will continue to post my general market view though). In case you wish to join us pls follow below link ( subscription fee is kept as bare minimum as an introductory offer)
https://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
Thanks & Happy Trading to you!
Market update: Nifty opened slightly positive above 10900 levels but could not sustain above it. Whole day it traded in a narrow range between 10880-10925 and closed almost flat.
As per our views ( and like we have been saying since last few days) there is every likelihood or possibility for one more leg up in Nifty. We have seen too much congestion at 10900 range and it needs to be shaken up before market can resume its main trend. After a solid run of 150+ points yesterday the consolidation around 10900 level is a welcome sign for bulls. Even though Nifty didn't break above 10925 it didn't break down either.
I am not suggesting that worst is behind us and everyone should start buying and building portfolio. No, not at all. Overall there is no change in main trend of Nifty and its just that for a near term perspective there is a possibility of Nifty moving up.That is the reason we exited shorts @10700 and gone long above 10800 levels. Lot of people asking me we were selling Nifty earlier when it was around 10900 and now we are buying. Well that's market for you, we will always do what charts tell us to do (off course we can be wrong at times) but as a positional trader we have to buy when there is a possibility of a move up and sell when there is a possibility of a down move, levels be damned.
I am not sure of up side targets but levels above 11K are a possibility even 11200-11300 can be seen. It will be difficult for nifty to go any higher than that but it can definitely go, no one should doubt it. It has not been an easy market to trade since last 2 months and I don't think it will be any easier to trade it in near term. You need lot of conviction and discipline to trade the present structure which is shaping up in Nifty.Falling INR/USD and fragile global markets continues to pose a threat to Bulls.
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| Nifty Intraday chart |
Now coming back to technical, there is no change in my view. Nifty is still making a diametric pattern in a diamond shape however only change I am anticipating now is that its not going to be a 'G' failure and probably G leg is going to go post a new high. I was expecting G leg to finish around 10925 earlier but it seems F leg got subdivided so the pattern still continues ( extension and subdivision are very much possible in a diametric). Please note Nifty can terminate G leg below 10985 levels itself or even go as far as 11300 levels ( In my opinion second scenario is most likely but you never know).
Trading recommendation: No change in trading position, same as yesterday. Still holding our longs. Don't recommend going short at current levels and one should wait a little bit if he wants to short Nifty however if one is already short then he should exit at CMP or keep a tight SL of 10990 levels.If you have a small risk appetite and trading basis just your gut feel then you should sit out for some time and wait for picture to become clear first. When we initiate a trade we ensure trade is properly managed and we keep updating all our subscribers at every stage during trading hours as to what needs to be done.
Imp thing: After Friday (18th jan), we will not be posting our trading details and trading recommendations ( entry exit points) here as we are turning paid and our trade recommendations will exclusively be reserved for our paid subscribers ( will continue to post my general market view though). In case you wish to join us pls follow below link ( subscription fee is kept as bare minimum as an introductory offer)
https://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
Thanks & Happy Trading to you!
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