Near Term Trend: ↔ (sideways with a positive bias)
Market update: Nifty opened flat inspite of the fact that all Asian markets were substantially up and even though SGX nifty was pointing to a higher open around 10950 levels. It turned weak during initial hours and threatened to go breakdown for a bit but eventually it recovered and closed flat.
Even though Nifty didn't give a crossover over 10925 the fact that it didn't break down below 10840 is a positive sign for the bulls ( same thing I mentioned yesterday too). In the morning the way market started moving down after opening created an impression as if nifty had started a new leg down however fall was soon arrested and Bulls pushed the nifty back to 10900 levels.
Usually when markets make a top the fall which follows is pretty sharp and markets don't hang around the top area for too long. This grinding which we are witnessing around 10900 is not symptomatic of top formation. Not suggesting that Nifty cant fall from here off course it can but the congestion we are witnessing around 10900 is suggesting a probability of a throw up or one more leg up.
Technically speaking, markets are making a diametric which probably is in its last let. Under normal conditions the G leg could extend for 7-10 days ( today was 4th day). I also mentioned yesterday that when some support/resistance becomes too obvious then it usually is taken out by a gap up or gap down opening so watch out for any gap up if happens during next week (it might trigger a short squeeze).
Globally, Dow had a very major resistance at 24K levels (S&P 2600) which was taken out yesterday. Nifty didn't fall when Dow was falling down so one may argue that Nifty wont go up when dow is going up which makes sense too. However this correlation ( or lack of) between Dow and Nifty cannot continue for long.
Another important thing to notice is the market breadth. It was totally tilted in the favour of sellers today (advance: decline-16:34). Inner structure of market remains weak hence any trade must be properly planned and should only be taken with a proper SL. Over all structure of the market remains weak but near term is suggesting an upside.
Trading Recommendation: Dont suggest going short at this stage, and if some one is long he can continue with a SL of 10840. Rest depends on how market behaves during trading hours. If you wish to subscribe our live Nifty trading calls/ updates during market hours then pls use below link:
http://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
Market update: Nifty opened flat inspite of the fact that all Asian markets were substantially up and even though SGX nifty was pointing to a higher open around 10950 levels. It turned weak during initial hours and threatened to go breakdown for a bit but eventually it recovered and closed flat.
Even though Nifty didn't give a crossover over 10925 the fact that it didn't break down below 10840 is a positive sign for the bulls ( same thing I mentioned yesterday too). In the morning the way market started moving down after opening created an impression as if nifty had started a new leg down however fall was soon arrested and Bulls pushed the nifty back to 10900 levels.
Usually when markets make a top the fall which follows is pretty sharp and markets don't hang around the top area for too long. This grinding which we are witnessing around 10900 is not symptomatic of top formation. Not suggesting that Nifty cant fall from here off course it can but the congestion we are witnessing around 10900 is suggesting a probability of a throw up or one more leg up.
Technically speaking, markets are making a diametric which probably is in its last let. Under normal conditions the G leg could extend for 7-10 days ( today was 4th day). I also mentioned yesterday that when some support/resistance becomes too obvious then it usually is taken out by a gap up or gap down opening so watch out for any gap up if happens during next week (it might trigger a short squeeze).
Globally, Dow had a very major resistance at 24K levels (S&P 2600) which was taken out yesterday. Nifty didn't fall when Dow was falling down so one may argue that Nifty wont go up when dow is going up which makes sense too. However this correlation ( or lack of) between Dow and Nifty cannot continue for long.
Another important thing to notice is the market breadth. It was totally tilted in the favour of sellers today (advance: decline-16:34). Inner structure of market remains weak hence any trade must be properly planned and should only be taken with a proper SL. Over all structure of the market remains weak but near term is suggesting an upside.
Trading Recommendation: Dont suggest going short at this stage, and if some one is long he can continue with a SL of 10840. Rest depends on how market behaves during trading hours. If you wish to subscribe our live Nifty trading calls/ updates during market hours then pls use below link:
http://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
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