Thursday, January 17, 2019

Nifty View: Update for 18th Jan 2019

Near Term Trend:  (sideways with a positive bias)

Market update: Nifty opened around 10925 levels however once again failed to break it and even dragged below 10850 before a bout of late buying pushed the index back to 10900 levels. it closed 15 points up at 10905.

I have lost the number of count 10925 level has been tested and markets failed to crossed it. Today there was a strong possibility that same would be crossed however once again markets failed to do so. Point to note is that all fall from 10900 levels are carrying the characteristics of a corrective fall and they are short lived and are getting retraced in faster time. So there is a possibility of speculative shorting which is happening around 10900 levels. If some one is bearish then it makes sense to short Nifty at 10900-10920 with a stop loss of 10950 its a simple and easy trade isn't it? however markets are never that simple so I continue to believe one more leg on the upside is pending.

On intraday chart nifty today made a 'hanging man' or ' hammer' pattern which signifies strength above 10930 and weakness below 10840 levels. when any support or resistance becomes too obvious then usually those are taken out by a gap up or gap down opening. So wont be surprised if we see that soon. On the downside if we see a follow up selling below 10850 then that would put serious question marks on the current leg of rally and the probability of Nifty going up from here.

Another important point to note is that yesterday Nifty broke above it recent high of 10850, today it broke above its previous swing high of 10924 (even though intraday and for a very very short time) now next high of nifty is placed at 10985 levels so there is every possibility of Nifty testing and crossing the same. I was hoping for 10980 levels to be tested atleast today however markets had different idea and it didn't materialize.

Technically speaking, no change in wave counts ( please see my previous post for the wave counts). I believe G leg  is still in progress and can see further upsides from here but things will change if 10840 is taken out now.

Trading recommendation: No change in position, same as yesterday. We are still carrying our longs and if someone is long he can continue with a SL of 10840.

Imp thing: After tomorrow, 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)

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 Thanks & Happy Trading to you!    





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