Near Term Trend: ↔ (sideways with a positive bias)
Market update: Nifty again opened flat today around 10900 and threatened to trade in the same familiar range of 10930-10850 for some time however a sharp rise after 30 mins of trading propelled Nifty to 10950-10980 levels and opened a new range. It finally closed up 60 points around 10960 levels.
I have been mentioning since last few days that 10930 doesn't seem to be the top and one more leg up is pending in Nifty.To quote couple of my previous posts:-
Mentioned in our Friday post (for 21st Jan)
"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." link: http://niftywaveindia.blogspot.com/2019/01/nifty-view-update-for-21st-jan-2019.html
Mentioned in our Thursday post (for 18th Jan)
" 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"
"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." link: http://niftywaveindia.blogspot.com/2019/01/nifty-view-update-for-18th-jan-2019.html
Anyways the sole point is that Nifty had been giving indication since last many days that its not yet ready to fall (yet). That's the reason we covered our short position at 10700 levels and since then Nifty has gone up by 260+ points. Going forward even though Nifty is not running away its not breaking down either. Today it might have failed to cross its previous swing high of 10985 but Sensex did cross the same level and even gave a closing above the same so ideally Nifty should do the same too.
So in nutshell even though the risk on the downside still remains, I wont be surprised if we see higher levels from here but doesn't mean that one can go long at any point. Market remains tricky and one need to properly plan and manage his trade with a strict stop loss.
Technically speaking, we are in G leg of overall diametric and a clear trend is only likely to emerge once the whole pattern is complete ( you may refer to my previous post for the wave counts). Till then markets will be deceptive and one needs to be extremely careful while trading in/out.
Trading recommendation: For anyone short in the market ( though its not recommended) the obvious SL is 11K levels and long positions one can keep a SL of 10900. We have taken some trading position in last couple of days if you wish to subscribe to our live whatsapp Nifty trading updates/trading recommendation during market hours then you may subscribe using below link:
http://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
Good Day and Good Trading to You!
Market update: Nifty again opened flat today around 10900 and threatened to trade in the same familiar range of 10930-10850 for some time however a sharp rise after 30 mins of trading propelled Nifty to 10950-10980 levels and opened a new range. It finally closed up 60 points around 10960 levels.
I have been mentioning since last few days that 10930 doesn't seem to be the top and one more leg up is pending in Nifty.To quote couple of my previous posts:-
Mentioned in our Friday post (for 21st Jan)
"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." link: http://niftywaveindia.blogspot.com/2019/01/nifty-view-update-for-21st-jan-2019.html
Mentioned in our Thursday post (for 18th Jan)
" 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"
"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." link: http://niftywaveindia.blogspot.com/2019/01/nifty-view-update-for-18th-jan-2019.html
Anyways the sole point is that Nifty had been giving indication since last many days that its not yet ready to fall (yet). That's the reason we covered our short position at 10700 levels and since then Nifty has gone up by 260+ points. Going forward even though Nifty is not running away its not breaking down either. Today it might have failed to cross its previous swing high of 10985 but Sensex did cross the same level and even gave a closing above the same so ideally Nifty should do the same too.
So in nutshell even though the risk on the downside still remains, I wont be surprised if we see higher levels from here but doesn't mean that one can go long at any point. Market remains tricky and one need to properly plan and manage his trade with a strict stop loss.
Technically speaking, we are in G leg of overall diametric and a clear trend is only likely to emerge once the whole pattern is complete ( you may refer to my previous post for the wave counts). Till then markets will be deceptive and one needs to be extremely careful while trading in/out.
Trading recommendation: For anyone short in the market ( though its not recommended) the obvious SL is 11K levels and long positions one can keep a SL of 10900. We have taken some trading position in last couple of days if you wish to subscribe to our live whatsapp Nifty trading updates/trading recommendation during market hours then you may subscribe using below link:
http://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
Good Day and Good Trading to You!
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